Summary
The applicant, a 35-year-old facilities specialist and self-employed individual, faced security clearance denial under Guideline F due to unresolved financial issues, including multiple delinquencies, judgments, and a history of bankruptcy. The judge found that the applicant failed to provide sufficient evidence of efforts to mitigate these financial concerns, leading to the conclusion that granting a security clearance was not consistent with national interest.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant filed for Chapter 13 bankruptcy in February 2003, which was dismissed in September 2003. He contends he paid off his credit cards, totaling approximately $6,000 to $10,000, but offered no documentation to support this (1.a). There are eight medical accounts, totaling $9,617, that were placed for collection with the same collection agency in April 2010. These accounts remain unresolved (1.b). There are 11 other medical accounts, totaling $5,324, that were placed for collection with another collection agency between 2009 and 2011. These accounts remain unresolved (1.c). There are three judgments filed against Applicant. One judgment, in the amount of $1,704, was obtained in April 2007 for unsatisfied medical bills. This judgment remains unresolved (1.d). Another judgment, in the amount of $1,529, was obtained in May 2008 for an unpaid credit card. This judgment remains unresolved (1.e). A third judgment, in the amount of $7,572, was obtained in April 2011 for various unsatisfied medical bills. This judgment remains unresolved (1.f). There is a second mortgage that Applicant took out on his residence in 2005 with a balance of $41,461, that was 180 days past due $2,794, and charged off in August 2011. This account remains unresolved (1.g). There is a first mortgage that Applicant took out on his residence in 2005 with a balance of $177,702, for which foreclosure was initiated. This account remains unresolved (1.h). Applicant failed to pay his corporate and personal federal income taxes for an unspecified period of 'previous tax years' in the approximate amount of $14,000. This account has not been resolved (1.i).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The decision turned on the following: The applicant failed to provide documentation supporting claims of resolving financial delinquencies; The applicant had multiple unresolved debts, including medical accounts and judgments; The applicant's financial difficulties indicated a lack of self-control and poor judgment.
Why the Applicant Was Denied
- The applicant failed to provide documentation supporting claims of resolving financial delinquencies.
- The applicant had multiple unresolved debts, including medical accounts and judgments.
- The applicant's financial difficulties indicated a lack of self-control and poor judgment.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
Key Rule Quoted
“Failure or inability to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness and ability to protect classified information.”
Procedural Posture
- SOR issuedMay 15, 2013Applicant received SOR on May 24, 2013.
- Answer filedJun 6, 2013Applicant elected to have the case decided on the written record.
- Hearing held—No hearing; decision based on written record.
- Decision dateNov 29, 2013
Cite For
- Failure to Mitigate Financial Concerns Under Guideline F
- Insufficient Evidence of Debt Resolution Efforts
- Impact of Financial Issues on Security Clearance Eligibility