Summary
A 61-year-old radar technician, employed by a defense contractor, was denied a security clearance under Guideline F (Financial Considerations) due to significant unresolved financial issues. The Statement of Reasons detailed multiple collection accounts for telephone, TV satellite, medical, and wireless services, as well as an account listed as NAS. Additionally, the applicant had several charged-off accounts, including one with a high credit term of $8,963 and a balance of $6,991, opened in November 2005.
Further financial concerns included a vehicle repossession in early 2008 for a vehicle purchased in February 2006, and a home foreclosure. The applicant's total unresolved debts exceeded $30,000. Disqualifying conditions under Guideline F were raised, while mitigating conditions were considered.
Despite earning a high annual salary of $180,000, the applicant failed to make payments on his delinquent debts or provide evidence of financial counseling or a plan to address these obligations. This lack of demonstrated financial responsibility led to the denial of his security clearance.
Why the applicant was denied
- The applicant has unresolved debts totaling over $30,000, including a home foreclosure and multiple charged-off accounts.
- The applicant failed to make any payments on his delinquent debts despite having a high annual salary of $180,000.
- The applicant did not provide evidence of financial counseling or a plan to address his debts.
Conditions referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurThe applicant's financial problems are recent and ongoing.
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlThe applicant has had sufficient time and income to address his financial issues.
- AG ¶ 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant has made minimal efforts to address his debts.
- AG ¶ 20(e)rejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant did not provide documented proof to substantiate any disputes.
Key rule quoted
“"A person who seeks access to classified information enters into a fiduciary relationship with the Government predicated upon trust and confidence."”
Procedural posture
- SOR issuedApr 9, 2013
- Answer filedundated
- Hearing heldDec 18, 2013via teleconference
- Decision dateFeb 24, 2014
Cite for
- Denial of Security Clearance Due to Unresolved Financial Obligations Under Guideline F
- Failure to Demonstrate Responsible Financial Management Despite High Income
- Lack of Good-faith Efforts to Address Delinquent Debts