Summary
The applicant, a 46-year-old protective security officer, faced security concerns under Guideline F due to six delinquent debts totaling over $63,000, of which only one was being paid. The applicant failed to demonstrate reliability in addressing his financial delinquencies, leading to a denial of his security clearance application.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: The 2007 judgment listed in ¶ 1.a for $21,796 is being resolved with monthly payments of $300. As of June 2013 the balance was $10,812 (1.a). The $84 debt listed in ¶ 1.b is owed to a cellular company, and remains unpaid or unresolved (1.b). The $13,579 debt listed in ¶ 1.c is owed to a bank for a credit card Applicant used for his failed business. Applicant did not contest the underlying debt (1.c). The $10,986 debt listed in ¶ 1.d is owed to a department store. Applicant used the account for his failed business (1.d). The $12,760 debt listed in ¶ 1.e is owed to a financing company. Applicant used the account for his failed business (1.e). The $4,090 debt listed in ¶ 1.f is owed to a credit card company. Applicant used the account for his failed business (1.f).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), AG ¶ 20(e). The decision turned on the following: The applicant has six delinquent debts totaling over $63,000, with only one debt being partially resolved; The applicant did not provide evidence of a good-faith effort to resolve the majority of his debts; The applicant denied responsibility for five of the six debts and did not demonstrate that his financial issues were under control.
Why the Applicant Was Denied
- The applicant has six delinquent debts totaling over $63,000, with only one debt being partially resolved.
- The applicant did not provide evidence of a good-faith effort to resolve the majority of his debts.
- The applicant denied responsibility for five of the six debts and did not demonstrate that his financial issues were under control.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Unlikely to RecurThe applicant's financial issues are ongoing and unresolved.
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlThe applicant did not demonstrate responsible management of his debts after the partnership termination.
- AG ¶ 20(c)rejectedReceived Counseling for the ProblemThe applicant did not provide evidence of financial counseling.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant only made payments on one debt and denied responsibility for the others.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute the Legitimacy of the DebtThe applicant's disputes were not substantiated with evidence.
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 issuedAug 7, 2013
- Answer filedAug 30, 2013Requested decision on the written record without a hearing.
- Hearing held—No hearing; case decided on the written record.
- Decision dateJan 7, 2014
Cite For
- Denial of Security Clearance Due to Unresolved Financial Delinquencies
- Failure to Demonstrate Reliability in Managing Debts
- Impact of Financial Considerations on Security Clearance Eligibility