Summary
The applicant, a 51-year-old defense contractor, faced security clearance denial under Guideline F due to excessive indebtedness stemming from a downturn in the defense industry and a divorce. Despite acknowledging the debts and expressing a desire to pay them off, the applicant failed to demonstrate sufficient evidence of reform or a systematic plan to address his financial obligations, leading to a conclusion that granting clearance was not consistent with national interest.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: indebted to Creditor A, for a delinquent credit card account, in the approximate amount of $1,678.00 (1.a). indebted to Creditor B, for a delinquent credit card, in the approximate amount of $7,612.00 (1.b). indebted to Creditor C, to a city, in the approximate amount of $982.00 (1.c). indebted to Creditor D, a cable company, in the approximate amount of $36.00 (1.d). indebted to Creditor E, for a delinquent credit card account in the approximate amount of $7,905.00 (1.e). indebted to Creditor F, for a delinquent debt in the approximate amount of $2,815.00 (1.f). indebted to Creditor G, an attorney, in the approximate amount of $34,000.00 (1.g). paid off Creditor H, a delinquent hospital bill in the approximate amount of $230.00 (1.h). indebted to Creditor I, a telephone company, in the approximate amount of $237.00 (1.i). indebted to Creditor J, a delinquent credit card account, in the approximate amount of $13,186.00 (1.j). indebted to Creditor K, for a delinquent doctor bill, in the approximate amount of $660.00 (1.k). indebted to Creditor L, for a delinquent hospital bill in the approximate amount of $284.00 (1.l). indebted to Creditor M, an attorney in the approximate amount of $3,800.00 (1.m). indebted to Creditor N, for a delinquent debt in the approximate amount of $81.00 (1.n). indebted to Creditor O, a bank in the amount of approximately $1,827.00 (1.o). delinquent State A taxes in the amount of approximately $89,172.98 (1.p). delinquent federal taxes in the approximate amount of $212,329.73 (1.q). delinquent State B taxes in the approximate amount of $1,589.74 (1.r).
The judge denied the clearance. The government raised disqualifying conditions F1, F3. The judge applied mitigating conditions F3. The decision turned on the following: The applicant has excessive indebtedness exceeding $300,000, which demonstrates poor judgment and unreliability; The applicant failed to provide a systematic plan to repay his debts or evidence of good faith efforts to resolve them; The applicant's financial situation poses a risk of engaging in illegal acts that could jeopardize national security.
Why the Applicant Was Denied
- The applicant has excessive indebtedness exceeding $300,000, which demonstrates poor judgment and unreliability.
- The applicant failed to provide a systematic plan to repay his debts or evidence of good faith efforts to resolve them.
- The applicant's financial situation poses a risk of engaging in illegal acts that could jeopardize national security.
Conditions Referenced
- F1raisedA History of Not Meeting Financial Obligations
- F3raisedInability or Unwillingness to Satisfy Debts
- F3rejectedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's ControlWhile the applicant experienced a downturn in the defense industry and a divorce, he did not demonstrate sufficient evidence of reform or a plan to address his debts.
Key Rule Quoted
“The adjudicative process is an examination of a sufficient period of a person's life to make an affirmative determination that the person is an acceptable security risk.”
Procedural Posture
- SOR issuedJan 4, 2002
- Answer filedJan 22, 2002
- Hearing heldMay 30, 2002Hearing rescheduled due to applicant's hospitalization.
- Decision dateJun 28, 2002
Cite For
- Excessive Indebtedness as a Disqualifying Factor Under Guideline F
- Insufficient Evidence of Financial Reform and Rehabilitation
- The Importance of Demonstrating a Systematic Plan to Address Financial Obligations