Summary
A 46-year-old project manager for a defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to unresolved financial issues. The Statement of Reasons detailed several allegations, including a $173 past-due medical account, a $9,261 past-due mortgage balance from a $277,500 loan, and an unpaid, charged-off credit card balance of $15,503. Additionally, an unpaid, charged-off charge account balance of $6,363 (with $1,651 past-due) and another charge account balance of $3,815 (with $816 past-due) were cited. The applicant claimed no knowledge of two of these accounts.
The denial was based on the applicant admitting to multiple delinquent accounts totaling approximately $35,115, which were either charged off or placed for collection. Despite acknowledging these debts, he failed to provide documentation of a repayment plan or engagement with creditors.
The applicant's financial difficulties have persisted since at least 2011, leading to concerns about his current reliability and judgment. Disqualifying conditions AG ¶ 19(a) and AG ¶ 19(c) were raised, while mitigating condition AG ¶ 20(b) was applied, but ultimately the clearance was denied.
Why the Applicant Was Denied
- Applicant admitted to multiple delinquent accounts totaling approximately $35,115, which were charged off or placed for collection.
- He provided no documentation to support claims of working with creditors or having a repayment plan.
- Applicant's financial difficulties have persisted since at least 2011, raising doubts about his current reliability and judgment.
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 That Resulted in the Financial Problem Were Largely Beyond the Person's ControlApplicant attributed his financial issues to a salary cut and medical bills, but did not provide sufficient evidence to support these claims.
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 issuedAug 25, 2014
- Answer filedSep 3, 2014
- Hearing heldOct 17, 2014Applicant elected to proceed without a hearing.
- Decision dateJun 29, 2015
Cite For
- Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
- Importance of Providing Evidence of Debt Repayment Plans
- Impact of Financial Irresponsibility on Security Clearance Eligibility