Summary
A 51-year-old support engineer, working as a defense contractor, was denied a security clearance under Guideline F (Financial Considerations) due to significant financial issues. The applicant had nine delinquent debts totaling almost $47,000, with eight of these debts, amounting to nearly $37,000, being admitted.
Specific allegations included a court judgment for $9,800, which incorporated interest, court costs, and attorney’s fees. Another debt, first appearing in a November 2008 credit report, was a charge account with a $16,999 balance and an original high credit limit of $15,000. Disqualifying conditions F.19 and F.20 were raised, while mitigating conditions F.20(a), F.20(b), and F.20(d) were considered.
The denial was based on the applicant's failure to demonstrate responsible financial management. He did not provide evidence of timely efforts to address his debts before the Statement of Reasons was issued, and he relied on garnishment for debt payment. The applicant also failed to provide evidence of financial counseling, leading to the conclusion that granting a clearance was not consistent with national interest.
Why the applicant was denied
- The applicant has nine delinquent debts totaling almost $47,000, with eight debts admitted totaling nearly $37,000.
- The applicant did not provide evidence of timely efforts to address his debts prior to the SOR issuance.
- The applicant failed to demonstrate responsible management of his financial obligations, relying on garnishment for debt payment.
Conditions referenced
- F.19raisedInability or Unwillingness to Satisfy Debts
- F.20raisedA History of Not Meeting Financial Obligations
- F.20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurWhile the applicant's financial problems may be considered unlikely to recur due to his wife's stable employment, the applicant's recent and frequent financial issues were not mitigated.
- F.20(b)rejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlAlthough the applicant attributed his financial issues to his wife's previous unemployment, he did not act responsibly in managing his debts.
- F.20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant's post-hearing payments were not sufficient to demonstrate a good-faith effort to resolve his debts.
Key rule quoted
“The Government must prove, by substantial evidence, disputed facts alleged in the SOR.”
Procedural posture
- SOR issuedOct 16, 2014
- Answer filed—Applicant requested a hearing.
- Hearing heldApr 16, 2015
- Decision dateDec 31, 2015
Cite for
- Denial of Security Clearance Due to Significant Financial Issues Under Guideline F
- Failure to Demonstrate Responsible Management of Debts
- Lack of Evidence for Financial Counseling or Budgeting Efforts