Summary
A 44-year-old defense contractor was denied a security clearance under Guideline F, Financial Considerations, due to significant unresolved financial issues. The applicant had a history of delinquent debts totaling approximately $91,005, with specific allegations in the Statement of Reasons (SOR) including an unpaid 2009 judgment for $972, two unpaid medical accounts for $1,431 and $1,252, a charged-off account for approximately $16,450, a past-due mortgage account for approximately $69,876, and two unresolved collection accounts for approximately $1,000 and $74.
Disqualifying conditions were raised under Adjudicative Guidelines (AG) ¶ 19(a) and AG ¶ 19(c). While mitigating conditions AG ¶ 20(b) and AG ¶ 20(d) were applied, they were insufficient to overcome the concerns.
The denial was based on the applicant's history of unresolved delinquent debts and a failure to demonstrate good-faith efforts to contact creditors or resolve these obligations. Although the applicant's financial difficulties were exacerbated by a failed business and inconsistent employment, he did not take responsible actions to mitigate the situation or present a concrete plan to address the debts listed in the SOR.
Why the Applicant Was Denied
- The applicant has a history of unresolved delinquent debts totaling approximately $91,005.
- The applicant did not demonstrate good-faith efforts to contact creditors or resolve debts.
- The applicant's financial issues were exacerbated by a failed business and lack of consistent employment, but he did not take responsible actions to mitigate the situation.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlWhile the applicant's financial problems began due to circumstances beyond his control, he did not act responsibly to mitigate them.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant did not make good-faith efforts to contact creditors or resolve debts.
Key Rule Quoted
“Any doubt concerning personnel being considered for access to classified information will be resolved in favor of national security.”
Procedural Posture
- SOR issuedOct 23, 2013
- Answer filed—Timely response to SOR.
- Hearing heldMar 7, 2014
- Decision dateMar 19, 2014
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Failure to Demonstrate Good-faith Efforts in Debt Resolution
- Impact of Financial Instability on Security Clearance Eligibility