Summary
The applicant, a 50-year-old male and former U.S. Air Force member, sought a security clearance under Guideline F due to significant financial difficulties, including a dismissed bankruptcy and multiple overdue debts totaling approximately $550,000. The judge found that the applicant failed to demonstrate responsible actions to resolve his debts, leading to a denial of his security clearance application.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: It is alleged in the SOR that Applicant filed a Chapter 13 Bankruptcy in July 2009; the bankruptcy was dismissed in 2010 (1.a). This overdue debt is cited in the SOR for a mortgage account that went to foreclosure with a deficiency amount of $528,000 (1.b). This overdue debt is cited in the SOR for a collection account in the amount of $8,535 (1.c). This overdue debt is cited in the SOR for a collection account in the amount of $3,027 (1.d). This overdue debt is cited in the SOR for a collection account in the amount of $6,672 (1.e). This overdue debt is cited in the SOR for a collection account in the amount of $1,263 (1.f). This overdue debt is cited in the SOR for a charged-off account in the amount of $1,050 (1.g). This overdue debt is cited in the SOR for a charged-off account in the amount of $15 (1.h). This overdue debt is cited in the SOR for a collection account in the amount of $1,931 (1.i). This overdue debt is cited in the SOR for a collection account in the amount of $9 (1.j).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The decision turned on the following: The applicant failed to provide evidence of resolving or reducing overdue debts; The applicant's financial difficulties were not mitigated by circumstances beyond his control, as he did not demonstrate responsible actions to address his debts.
Why the Applicant Was Denied
- The applicant failed to provide evidence of resolving or reducing overdue debts.
- The applicant's financial difficulties were not mitigated by circumstances beyond his control, as he did not demonstrate responsible actions to address his debts.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedHistory of Not Meeting Financial Obligations
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 2, 2015
- Answer filedJul 31, 2015Requested decision on written record.
- Hearing held—No hearing; decided on written record.
- Decision dateApr 27, 2016
Cite For
- Failure to Demonstrate Responsible Financial Management Under Guideline F
- Impact of Unresolved Debts on Security Clearance Eligibility
- Application of Whole-person Concept in Financial Considerations Cases