Summary
A 51-year-old flight line inspector for a defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to unresolved financial issues totaling $124,453. The Statement of Reasons detailed five specific allegations: a charged-off credit card account for $6,500, a charged-off mortgage account for $78,606, a judgment for $24,136 in favor of a mortgage company, and two past-due credit card accounts for $4,975 and $10,236, respectively.
Disqualifying conditions under Adjudicative Guideline (AG) ¶ 19(a) and AG ¶ 19(c) were raised. While mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), and AG ¶ 20(e) were considered, they were not sufficient to overcome the concerns.
The denial was based on the applicant's failure to mitigate financial security concerns, citing numerous and ongoing delinquent debts. Despite acknowledging his obligations and attempting to file for Chapter 7 bankruptcy, he did not follow through with the bankruptcy process and made insufficient efforts to resolve his financial problems.
Why the Applicant Was Denied
- The applicant failed to mitigate financial considerations security concerns due to numerous and ongoing delinquent debts.
- He did not follow through with his Chapter 7 bankruptcy despite having been given opportunities to do so.
- The applicant's financial problems were not resolved, and he made insufficient efforts 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 Recur
- AG ¶ 20(b)rejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- AG ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the Problem
- AG ¶ 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- AG ¶ 20(e)rejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedSep 19, 2013
- Answer filedDec 12, 2013
- Hearing heldMar 26, 2014
- Decision dateJun 16, 2014
Cite For
- Failure to Mitigate Financial Considerations Under Guideline F
- Insufficient Efforts to Address Delinquent Debts
- Importance of Following Through with Bankruptcy Plans in Financial Cases