Summary
The applicant, a 55-year-old systems engineer with a history of financial difficulties, sought a security clearance under Guideline F. He had multiple charged-off and collection accounts totaling nearly $55,000, with four judgments entered against him. The judge found that the applicant failed to demonstrate responsible management of his debts, leading to the denial of his security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: charged-off account totaling $8,104 (1.a). judgment entered against Applicant on a charged-off account (1.b). charged-off account paid for less than the full balance (1.c). charged-off account totaling $4,737 (1.d). charged-off account totaling $2,607 (1.e). charged-off account totaling $2,606 (1.f). judgment entered against Applicant on a collection account (1.g). charged-off account totaling $18,729 (1.h). judgment entered against Applicant on a collection account (1.i). charged-off account totaling $4,272 (1.j). collection account totaling $55 (1.k). charged-off account totaling $1,500 (1.l). unpaid taxes for tax years 2010 and 2011 (1.m).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(d), AG ¶ 20(b), AG ¶ 20(c). The decision turned on the following: The applicant has multiple delinquent debts totaling over $54,000, with four judgments against him; He provided insufficient documentation to demonstrate that his financial situation was under control or that he had made a good-faith effort to resolve his debts; The applicant's financial difficulties are recent and ongoing, raising concerns about his reliability and trustworthiness.
Why the Applicant Was Denied
- The applicant has multiple delinquent debts totaling over $54,000, with four judgments against him.
- He provided insufficient documentation to demonstrate that his financial situation was under control or that he had made a good-faith effort to resolve his debts.
- The applicant's financial difficulties are recent and ongoing, raising concerns about his reliability and trustworthiness.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant paid a $55 collection account and a charged-off account for less than the full balance.
- AG ¶ 20(b)rejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlWhile the applicant's wife's job loss contributed to financial difficulties, he did not provide sufficient evidence to show that this significantly impacted his financial management.
- AG ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the Problem And/or There Are Clear Indications That the Problem Is Being Resolved or Is Under ControlThe applicant did not provide evidence of financial counseling or demonstrate that his financial issues were under control.
Key Rule Quoted
“A person who seeks access to classified information enters into a fiduciary relationship with the Government predicated upon trust and confidence.”
Procedural Posture
- SOR issuedApr 9, 2014
- Answer filedJun 18, 2014Applicant elected to proceed without a hearing.
- Hearing held—No hearing; decision based on written record.
- Decision dateMar 23, 2015
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Impact of Financial Irresponsibility on Security Clearance Eligibility
- Insufficient Evidence of Debt Resolution Efforts in Security Clearance Cases