Summary
A 49-year-old male Department of Defense contractor applicant was denied a security clearance under Guideline F, Financial Considerations, due to unresolved financial obligations and a lack of responsible action. The Statement of Reasons detailed five specific allegations of debt. These included a $106 unpaid judgment from September 2009, a $3,112 credit card account charged off in May 2011, and a $118,348 second mortgage charged off in April 2011. Additionally, a $1,564 credit card account was charged off in May 2011, and a $15,204 loan account was charged off in August 2011.
The applicant admitted to some debts but failed to provide sufficient evidence of resolution for most. The denial was based on the presence of multiple unresolved delinquent debts, totaling approximately $138,334.
The applicant did not provide documentation to substantiate claims of settling debts, with the exception of the homeowner's association judgment. Furthermore, he did not demonstrate a good-faith effort to resolve his financial issues or seek financial counseling. Disqualifying conditions AG ¶ 19(a) and AG ¶ 19(c) were raised, while mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), and AG ¶ 20(d) were applied.
Why the Applicant Prevailed
- The applicant provided evidence of payment for the homeowner's association judgment, leading to a favorable finding for that specific debt.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedHistory of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened Long Ago or InfrequentlyThe applicant's financial issues are ongoing and unresolved.
- AG ¶ 20(b)appliedConditions Largely Beyond ControlThe applicant experienced financial difficulties due to circumstances beyond his control, but did not act responsibly.
- AG ¶ 20(c)rejectedReceived Financial CounselingThere is no evidence that the applicant received financial counseling.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsThe applicant did not provide sufficient evidence of efforts to resolve 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 2, 2014
- Answer filedJul 14, 2014Applicant requested decision on written record.
- Hearing held—
- Decision dateJan 15, 2015
Cite For
- Denial Based on Unresolved Financial Obligations Under Guideline F
- Importance of Providing Documentation for Claimed Debt Resolution
- Consideration of the Whole-person Concept in Financial Cases