Summary
A 54-year-old defense contractor and former U.S. Navy lieutenant commander was denied a security clearance under Guideline F (Financial Considerations) due to unresolved financial issues. The Statement of Reasons detailed multiple outstanding debts, including several credit card accounts, a line of credit, a student loan for his son, and a second mortgage.
Specific allegations included a line of credit with a past-due balance that grew from $7,068 in 2011 to $8,256 by February 2015, and another credit card account with a past-due balance of $9,862 by February 2015. Other significant debts included a charged-off credit card account with a $7,989 past-due balance, another with a $36,091 remaining balance when charged off in 2009, and a credit card account with a high credit of $103,705 and a past-due balance of $116,613 when charged off. Additionally, a second mortgage, issued for $66,000 in 2007, had a balance of $70,146 by 2012 after the applicant's primary residence was foreclosed.
Despite acknowledging some debts and claiming attempts at debt consolidation, the applicant failed to provide sufficient documentation or evidence of good-faith efforts to resolve his financial obligations. The decision noted that his financial problems had persisted since 2009, indicating a lack of control over his financial situation, and no documentation was submitted to support claims of debt consolidation or negotiations with creditors. Consequently, the security concerns were not mitigated, and the clearance was denied.
Why the Applicant Was Denied
- Applicant failed to provide evidence of a good-faith effort to resolve his debts.
- The applicant's financial problems have persisted since 2009, indicating a lack of control over his financial situation.
- No documentation was submitted to support claims of debt consolidation or negotiations with creditors.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions Largely Beyond the Person's ControlPartial application due to periods of unemployment, but insufficient evidence of responsible action.
- AG ¶ 20(a)rejectedBehavior Occurred so Long Ago or InfrequentlyFinancial issues are ongoing and not infrequent.
- AG ¶ 20(c)rejectedReceived Counseling for the ProblemNo evidence of financial counseling was provided.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay CreditorsNo documentation of good-faith efforts to resolve debts was submitted.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute Legitimacy of DebtNo documented proof of disputes regarding debts was provided.
Key Rule Quoted
“A person who seeks access to classified information enters into a fiduciary relationship with the Government predicated upon trust and confidence.”
Procedural Posture
- SOR issuedJun 20, 2014
- Answer filedAug 19, 2014Applicant elected to proceed without a hearing.
- Hearing held—Case decided on the written record.
- Decision dateMay 18, 2015
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Lack of Documentation Supporting Debt Resolution Efforts
- Impact of Long-standing Financial Issues on Security Clearance Eligibility