Summary
The applicant, a DOD contractor with a Master's Degree, faced security clearance denial under Guideline F due to significant unresolved financial issues, including multiple delinquent accounts and judgments totaling over $116,000. Despite claims of a short sale resolving some debts, the applicant failed to provide corroborating documentation, leading to the conclusion that financial concerns were not mitigated.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: a $225,804 mortgage account that was past-due in the amount of $3,577 (1.a). a $313,488 home equity loan account that was past-due in the amount of $53,404 (1.b). a $25,896 account that was placed for collection (1.c). a $16,527 account that was placed for collection (1.d). a $16,525 account that was placed for collection (1.e). a $2,046 charged-off account (1.f). a $1,542 charged-off account (1.g). a $22,668 judgment filed against Applicant in 2014 for a delinquent credit card account (1.h). a $20,531 judgment filed against Applicant in 2014 for a delinquent credit card account (1.i). a $10,507 charged-off account (1.j).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(d). The decision turned on the following: The applicant has a history of not meeting financial obligations, including multiple delinquent accounts and judgments totaling over $116,000; The applicant did not provide sufficient evidence to corroborate claims of debt resolution, including documentation of a short sale; The applicant's financial problems are ongoing, and he did not demonstrate responsible financial management or provide a budget.
Why the Applicant Was Denied
- The applicant has a history of not meeting financial obligations, including multiple delinquent accounts and judgments totaling over $116,000.
- The applicant did not provide sufficient evidence to corroborate claims of debt resolution, including documentation of a short sale.
- The applicant's financial problems are ongoing, and he did not demonstrate responsible financial management or provide a budget.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedHistory of Not Meeting Financial Obligations
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlWhile the applicant experienced unemployment in the past, current financial issues are not related to that period.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant's claims of debt resolution lack corroborating documentation.
Key Rule Quoted
“An applicant is not required to be debt free, but is required to manage his finances in such a way as to meet his financial obligations.”
Procedural Posture
- SOR issuedAug 26, 2015
- Answer filedSep 17, 2015Requested decision on the record.
- Hearing held—
- Decision dateMar 15, 2016
Cite For
- Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
- Importance of Corroborating Evidence in Financial Mitigation Claims
- Impact of Ongoing Financial Difficulties on Security Clearance Eligibility