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Summary

The applicant, a 27-year-old government contractor, faced security concerns under Guideline F due to multiple unresolved financial delinquencies totaling approximately $17,430. Despite some debts being attributed to identity theft and medical issues, the applicant failed to demonstrate responsible efforts to resolve his financial obligations, leading to a denial of his security clearance.

Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: The debt alleged in ¶ 1.a is a medical debt incurred by Applicant’s wife in the amount of $1,022. A February 2013 credit report shows a date of last activity as March 2010. Applicant admitted this debt, but believed that Medicaid should have paid it. He did not provide any documentation to support his claim, or offer any evidence concerning his plans to resolve the debt. This debt is unresolved (1.a). The debt alleged in SOR ¶ 1.b is a delinquent medical debt in the amount of $1,683 that Applicant incurred when he suffered the loss of a finger due to a workplace accident. The debt is for ambulance service. Applicant admitted this debt, but believed it was covered by workers’ compensation coverage. There is evidence showing that he was compensated in June 2010 ($1,800) and July 2010 ($300) for his workers’ compensation claim. There is no evidence to show that these amounts or any other amount were used to pay this debt. He has not formally disputed this debt. This debt is unresolved (1.b). The debt alleged at SOR ¶ 1.c is a collection account in the amount of $1,647. Applicant admitted this debt was related to an apartment he leased in 2008. After he missed a payment, the debt was sent to a collection service and he did not follow-up on it. He has not set up payments for this debt, but indicated he would use this year’s tax refund to pay the debt. This debt is unresolved (1.c). The debts alleged at SOR ¶¶ 1.d through 1.g are delinquent credit card accounts ($6,165; $1,621; $1,573; and $3,719). Applicant denied these debts claiming that he was a victim of identity theft regarding these accounts. He believed his mother opened the accounts using his name and information. He submitted an identity-theft affidavit that supported his claim. As a result of the affidavit, several delinquent accounts (non-SOR related) were removed from his credit report and 'disputed' notations were made on his credit reports concerning the debts listed at SOR ¶¶ 1.e through 1.g. No annotations were made concerning the debt listed at SOR ¶ 1.d, and this debt remains listed on the February 2013 credit report. The debts listed at SOR ¶¶ 1.e through 1.g. are resolved, but the debt listed at SOR ¶ 1.d is unresolved (1.d).

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(e). The decision turned on the following: The applicant has numerous unresolved delinquent debts that raise security concerns; The applicant did not provide sufficient documentation to support disputes regarding his debts; The applicant failed to establish a payment plan or demonstrate a good-faith effort to resolve his debts.

Why the Applicant Was Denied

• The applicant has numerous unresolved delinquent debts that raise security concerns.
• The applicant did not provide sufficient documentation to support disputes regarding his debts.
• The applicant failed to establish a payment plan or demonstrate a good-faith effort to resolve his debts.

Conditions Referenced

Key Rule Quoted

“The protection of the national security is the paramount consideration.”

Procedural Posture

• SOR issuedMay 22, 2013
• Answer filedJun 10, 2013
• Hearing heldJan 28, 2014
• Decision dateFeb 21, 2014

Cite For

• Evaluation of Financial Considerations Under Guideline F
• Impact of Unresolved Debts on Security Clearance Eligibility
• Consideration of Identity Theft in Financial Assessments