Summary
A 49-year-old sensor operator for a defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to significant and ongoing financial issues. The Statement of Reasons detailed several delinquent accounts, including a $48,464.30 debt from a foreclosed property's second loan, which resulted in a November 2009 lawsuit.
Additional allegations included multiple delinquent credit card accounts. For one, the applicant failed to make a required $500 initial payment. For another, an initial payment of $1,224.86 was required, followed by $50 monthly payments. A third credit card debt involved an initial $500 payment made on May 2, 2012, with subsequent $70.20 payments made on June 22, 2012, and August 30, 2012. One credit card collection account was paid in full around June 25, 2012.
The applicant also faced issues with repossessed vehicles. A $6,335 debt from one repossession had a proposed settlement of three $1,500 payments, which the applicant could not make. A second vehicle, purchased for about $20,000, was also repossessed. For this account, the applicant entered a repayment plan, making an initial $500 payment on May 2, 2012, and subsequent $50 payments on June 22, 2012, and August 30, 2012. The judge found a long history of financial irresponsibility, ongoing problems, and poor judgment, concluding that a clearance was not consistent with national interest.
Why the Applicant Was Denied
- The applicant has a long history of financial irresponsibility dating back to 1993.
- The applicant's financial problems are ongoing and will not be resolved in the foreseeable future.
- The applicant's decision to purchase a second residence without adequate financial means was deemed unwise.
Conditions Referenced
- DC 19(a)appliedInability or Unwillingness to Satisfy Debts
- DC 19(c)appliedA History of Not Meeting Financial Obligations
Key Rule Quoted
“The sole purpose of a security clearance decision is to decide if it is clearly consistent with the national interest to grant or continue a security clearance for an applicant.”
Procedural Posture
- SOR issuedJun 8, 2012
- Answer filedJul 5, 2012Applicant admitted all allegations except subparagraph 1.e.
- Hearing heldAug 22, 2012
- Decision dateSep 21, 2012
Cite For
- Financial Irresponsibility as a Disqualifying Factor Under Guideline F
- Ongoing Financial Issues Impacting Security Clearance Eligibility
- The Importance of Demonstrating Financial Stability for Security Clearance Approval