Summary
The applicant, a 44-year-old defense contractor, faced security clearance denial under Guideline F due to significant financial difficulties totaling approximately $77,000 in overdue debts. Despite claiming that his financial issues stemmed from a divorce and frequent relocations, the judge found insufficient evidence of efforts to resolve the debts, leading to a conclusion that the applicant had not mitigated the security concerns.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: This overdue debt is cited in the SOR for a collection account in the amount of $2,107 (1.a). This overdue debt is cited in the SOR for a medical account in the amount of $50 (1.b). This overdue debt is cited in the SOR for a collection account in the amount of $909 (1.c). This overdue debt is cited in the SOR for a collection account in the amount of $198 (1.d). This overdue debt is cited in the SOR for a charged-off account in the amount of $322 (1.e). This overdue debt is cited in the SOR for a charged-off account in the amount of $1,105 (1.f). This overdue debt is cited in the SOR for a charged-off account in the amount of $746 (1.g). This overdue debt is cited in the SOR for a collection account in the amount of $158 (1.h). This overdue debt is cited in the SOR for a mortgage account that went to foreclosure in the amount of 72,185 (1.i).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(d). The decision turned on the following: The applicant has significant overdue debts totaling approximately $77,000, with only one debt resolved out of nine allegations; The applicant failed to provide evidence of good-faith efforts to repay overdue creditors or resolve debts, as required under AG ¶ 20(d); The applicant did not submit a Personal Financial Statement or other evidence of current financial stability.
Why the Applicant Was Denied
- The applicant has significant overdue debts totaling approximately $77,000, with only one debt resolved out of nine allegations.
- The applicant failed to provide evidence of good-faith efforts to repay overdue creditors or resolve debts, as required under AG ¶ 20(d).
- The applicant did not submit a Personal Financial Statement or other evidence of current financial stability.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedHistory of Not Meeting Financial Obligations
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlThe applicant's frequent moves were not shown to be beyond his control.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsOnly one debt was proven to be resolved, and no evidence of good-faith efforts was presented.
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 issuedJul 11, 2014
- Answer filed—Applicant requested a decision on the written record.
- Hearing held—No hearing; decision based on written record.
- Decision dateMay 29, 2015
Cite For
- Denial of Security Clearance Due to Significant Financial Difficulties Under Guideline F
- Insufficient Evidence of Efforts to Resolve Debts as a Basis for Denial
- Application of the Whole-person Concept in Evaluating Financial Considerations