Summary
A 51-year-old federal contractor was denied a security clearance under Guideline F, Financial Considerations, due to unresolved financial issues. The Statement of Reasons detailed ten delinquent debts totaling approximately $72,488, including a $3,795 state tax lien, a $2,388 debt, a $44,673 debt, a $773 debt, a $4,802 debt, and a $7,473 credit card account. Additionally, a $251,000 home mortgage was foreclosed and sold.
Disqualifying conditions under Adjudicative Guideline (AG) ¶ 19(a) and AG ¶ 19(c) were raised. While mitigating conditions AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), and AG ¶ 20(e) were considered, they were not sufficient to overcome the concerns.
The denial was based on the applicant's ten delinquent debts and the past due mortgage remaining unresolved. The applicant failed to provide sufficient evidence of responsible financial management or documentation to support claims of payments made on debts. Furthermore, no documentation was provided to substantiate disputes regarding the legitimacy of certain debts.
Why the Applicant Was Denied
- Applicant has ten delinquent debts totaling approximately $72,488 and a past due mortgage of $251,000, which remain unresolved.
- Insufficient evidence was provided to demonstrate responsible financial management or to support claims of payments made on debts.
- The applicant did not provide documentation to substantiate disputes regarding the legitimacy of certain debts.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue CreditorsApplicant resolved some debts in SOR ¶¶ 1.a, 1.d, 1.i, and 1.k.
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlWhile caring for his wife's siblings was beyond his control, the applicant's poor financial management was within his control.
- AG ¶ 20(c)rejectedReceived Counseling for the ProblemInsufficient evidence was provided to conclude that the applicant has received recent financial counseling.
- AG ¶ 20(e)rejectedDispute Legitimacy of Past-due DebtThe applicant did not provide documented proof to substantiate the basis of the dispute.
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 issuedJul 14, 2014
- Answer filedAug 21, 2014Applicant elected to have the case decided on the written record.
- Hearing held—No hearing; case decided on the written record.
- Decision dateJun 23, 2015
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations Under Guideline F
- Insufficient Evidence of Responsible Financial Management
- Failure to Provide Documentation Supporting Claims of Debt Resolution and Disputes