Summary
The applicant, a 55-year-old defense contractor, faced security clearance denial under Guideline F due to financial considerations stemming from a history of unpaid debts and poor financial management. Despite some efforts to resolve certain debts, the applicant's overall financial situation and lack of a comprehensive plan to address all obligations led to the denial of his security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: judgments for $1,036 and $984 (1.a). judgments for $1,036 and $984 (1.b). delinquent medical bills for $695 (1.c). delinquent medical bills for $142 (1.d). delinquent medical bills for $122 (1.e). delinquent medical bills for $161 (1.f). cable bill for $285 (1.g). internet service bill for $1,312 (1.h). collection account for $165 (1.i). collection account for $165 (1.j). delinquent medical bills for $182 (1.k). delinquent medical bills for $256 (1.l). credit card account charged off for $409 (1.m). telephone bill placed for collection for $156 (1.n). credit card account in collection for $2,738 (1.o). delinquent mortgage in foreclosure, with a balance due of $225,000 (1.p).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c), AG ¶ 19(e). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(d), AG ¶ 20(e). The decision turned on the following: The applicant has a history of unpaid debts and financial mismanagement; He failed to demonstrate a comprehensive plan to resolve all financial obligations; Several debts remain unresolved, and the applicant has not acted responsibly regarding certain debts.
Why the Applicant Was Denied
- The applicant has a history of unpaid debts and financial mismanagement.
- He failed to demonstrate a comprehensive plan to resolve all financial obligations.
- Several debts remain unresolved, and the applicant has not acted responsibly regarding certain debts.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 19(e)appliedConsistent Spending Beyond One’s Means
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlWhile some conditions were beyond his control, the applicant's choice to maintain two households contributed to his financial issues.
- AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue CreditorsThe applicant has made efforts to resolve some debts, including medical bills.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute Legitimacy of Past-due DebtThe applicant did not provide sufficient evidence to support disputes regarding certain debts.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the AG.”
Procedural Posture
- SOR issuedJan 7, 2013
- Answer filedFeb 2, 2013
- Hearing heldJun 4, 2013Conducted via video teleconference.
- Decision date[Not specified]
Cite For
- Financial Irresponsibility Under Guideline F
- Impact of Unresolved Debts on Security Clearance Eligibility
- Criteria for Demonstrating Financial Responsibility in Security Clearance Cases