Summary
A 62-year-old defense contractor employee was denied a security clearance under Guideline F (Financial Considerations) due to a history of financial difficulties. The applicant had two Chapter 7 bankruptcies and multiple delinquent debts totaling approximately $68,432. Specific allegations included a retail charge account opened in September 1984, past due over 120 days by June 2010, with a balance of $2,462. Another retail charge account, also opened in September 1984, was charged off by October 2013 for $2,312. Additionally, a credit card account for $1,899 was placed for collection in October 2010.
The judge determined that the applicant failed to demonstrate responsible management of his financial obligations. Disqualifying conditions under Adjudicative Guidelines Paragraphs 19(a) and 19(c) were raised, while mitigating conditions under Paragraphs 20(a), 20(b), 20(c), and 20(d) were considered.
Ultimately, the clearance was denied because the applicant had a long history of unresolved financial problems. He did not provide evidence of a meaningful track record of payments on delinquent debts and had not received financial counseling to address his issues.
Why the Applicant Was Denied
- The applicant has a long history of financial problems that remain unresolved.
- He failed to provide evidence of a meaningful track record of payments on delinquent debts.
- The applicant did not receive financial counseling to address his financial issues.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions Largely Beyond the Person's ControlThe applicant faced economic downturns affecting his financial situation.
- AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue CreditorsThe applicant settled one debt but did not establish a pattern of responsible financial behavior.
- AG ¶ 20(a)rejectedBehavior Happened Long Ago or InfrequentlyThe applicant's financial issues are ongoing and significant.
- AG ¶ 20(c)rejectedReceived or Receiving CounselingThe applicant did not receive financial counseling.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedAug 11, 2014
- Answer filedSep 15, 2014
- Hearing heldDec 10, 2014
- Decision dateFeb 23, 2015
Cite For
- Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
- Importance of Demonstrating Responsible Financial Management for Security Clearance Eligibility
- Impact of Ongoing Financial Problems on Trustworthiness and Reliability Assessments.