Summary
A 58-year-old defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to significant delinquent debts and a recent bankruptcy. The Statement of Reasons detailed several financial issues, including a judgment debt from a returned check, multiple medical debts, a charged-off credit card account opened in 2005 and last paid in 2010, a 2011 dental bill, and another debt from a returned check. Additionally, the applicant had an uncovered medical bill for a biopsy.
The applicant had incurred over $20,000 in delinquent debts that he was unable to repay, and had also recently discharged over $44,000 in bankruptcy. While several mitigating conditions were considered, the judge found insufficient evidence of changed circumstances to alleviate security concerns.
Ultimately, the denial was based on the applicant's failure to demonstrate that he had taken effective steps to resolve his debts or that future delinquencies would be precluded. The evidence presented was deemed insufficient to mitigate the security concerns arising from his ongoing financial obligations.
Why the Applicant Was Denied
- Applicant incurred over $20,000 in delinquent debts that he could not afford to repay.
- He failed to demonstrate changed circumstances that would preclude future delinquencies.
- The evidence was insufficient to mitigate resulting 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)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlApplicant voluntarily separated from his wife and took no effective steps toward divorce.
- AG ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the ProblemApplicant did not undergo financial counseling other than that required for bankruptcy.
- AG ¶ 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue CreditorsApplicant took no action to resolve debts until loss of security clearance was imminent.
- AG ¶ 20(e)rejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due DebtApplicant did not dispute any SOR-listed debts.
Key Rule Quoted
“Any doubt concerning personnel being considered for access to classified information will be resolved in favor of the national security.”
Procedural Posture
- SOR issuedJun 6, 2014
- Answer filedJul 18, 2014
- Hearing heldJan 12, 2015in person with Department Counsel participating via video teleconference
- Decision dateMar 27, 2015
Cite For
- Denial of Security Clearance Due to Significant Financial Delinquencies Under Guideline F
- Insufficient Evidence of Changed Circumstances to Mitigate Financial Concerns
- Rejection of Mitigating Conditions Related to Financial Management and Responsibility