Summary
The applicant, a 41-year-old employed by a defense contractor, sought a security clearance under Guideline F due to financial difficulties, including multiple overdue debts. The judge found that the applicant failed to resolve or reduce these debts and demonstrated poor judgment in accumulating them, leading to a denial of the security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: This overdue debt is cited in the SOR for a medical account in the amount of $240 (1.a). This overdue debt is cited in the SOR for a collection account in the amount of $200 (1.b). This overdue debt is cited in the SOR for a collection account in the amount of $3,261 (1.c). This overdue debt is cited in the SOR for a collection account in the amount of $2,010 (1.d). This overdue debt is cited in the SOR for a collection account in the amount of $6,738 (1.e). This overdue debt is cited in the SOR for a collection account in the amount of $6,851 (1.f). This overdue debt is cited in the SOR for a collection account in the amount of $2,392 (1.g). This overdue debt is cited in the SOR for a collection account in the amount of $2,392 (1.h). This overdue debt is cited in the SOR for a charged off account in the amount of $1,067 (1.i).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d). The decision turned on the following: The applicant has significant delinquent debts that have not been resolved or reduced; The applicant's financial difficulties were largely self-inflicted due to poor judgment in purchasing multiple homes without sufficient income; The applicant did not demonstrate any good-faith effort to repay overdue creditors or resolve debts.
Why the Applicant Was Denied
- The applicant has significant delinquent debts that have not been resolved or reduced.
- The applicant's financial difficulties were largely self-inflicted due to poor judgment in purchasing multiple homes without sufficient income.
- The applicant did not demonstrate any good-faith effort to repay overdue creditors or resolve debts.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedHistory of Not Meeting Financial Obligations
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlThe applicant's financial issues were exacerbated by poor judgment in purchasing homes.
- AG ¶ 20(c)rejectedFinancial Counseling or Debt Consolidation ServicesThe applicant indicated he never received financial counseling.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant has not initiated any efforts to resolve his debts.
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 issuedApr 25, 2013
- Answer filedJul 7, 2013Requested decision on written record.
- Hearing held—No hearing; decision based on written record.
- Decision dateJan 10, 2014
Cite For
- Disqualifying Conditions Under Guideline F Due to Financial Difficulties
- Rejection of Mitigating Conditions Related to Financial Issues
- Whole-person Concept Applied in Financial Consideration Cases