Summary
A 50-year-old applicant, a divorcee, was denied a security clearance under Guideline F (Financial Considerations) due to approximately $64,000 in past-due debts. These financial difficulties were attributed to child support obligations and a failed business.
The Statement of Reasons detailed numerous outstanding debts, including two judgments totaling about $2,599 to Creditor A, a $300 past-due debt to Creditor C, and a disputed $1,103 debt to Creditor D. Other significant debts included about $10,345 from a vehicle repossession by Creditor G, about $30,685 owed to Creditor P, and about $5,196 to Creditor Q. The applicant also admitted to various credit card and other debts, while denying being past due on student loans to Creditor K. One debt to Creditor E, initially $1,133.73, was settled for $453.59, with an initial payment made.
Despite some efforts to address certain obligations, the applicant did not demonstrate responsible action regarding most of his financial obligations. The decision cited the applicant's failure to credibly address the substantial past-due debts and to meet the burden of persuasion to mitigate the security concerns, leading to the denial of the clearance.
Why the Applicant Was Denied
- The applicant has approximately $64,000 in past-due debts that he has not credibly addressed.
- He failed to act responsibly under the circumstances regarding his financial obligations.
- The applicant did not meet the burden of persuasion to mitigate the security concerns.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)rejectedThe Individual Acted Responsibly Under the CircumstancesThe applicant failed to demonstrate responsible action regarding most debts.
- AG ¶ 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant only made minimal efforts to address some debts.
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 issuedDec 11, 2014
- Answer filedJan 8, 2015
- Hearing heldApr 13, 2015
- Decision dateJun 11, 2015
Cite For
- Financial Irresponsibility Under Guideline F
- Failure to Mitigate Significant Past-due Debts
- Whole-person Concept in Security Clearance Evaluations