Summary
A 48-year-old computer scientist was denied a security clearance under Guideline F (Financial Considerations) due to a history of financial difficulties. The Statement of Reasons (SOR) included allegations that the applicant denied a state tax lien of approximately $1,287 and an unpaid civil judgment of $7,000. The applicant admitted to other debts detailed in the SOR.
Further financial issues included two Chapter 7 bankruptcies: one filed on May 27, 1993, with debts discharged on September 28, 1993, and another filed on November 7, 2000, with debts discharged on February 21, 2001. These issues raised disqualifying conditions E2.A6.1.2.1 and E2.A6.1.2.3.
Despite the application of mitigating conditions E2.A6.1.3.1, E2.A6.1.3.2, E2.A6.1.3.3, E2.A6.1.3.4, and E2.A6.1.3.6, the clearance was denied. The judge found a long history of financial overextension, a failure to provide credible evidence of debt satisfaction or a practical resolution plan, and a lack of financial counseling.
Why the applicant was denied
- The applicant has a long history of financial overextension, including two Chapter 7 bankruptcies.
- He failed to provide credible evidence of debt satisfaction or a practical plan for resolving his financial issues.
- The applicant did not seek counseling for his ongoing financial difficulties.
Conditions referenced
- E2.A6.1.2.1raisedFinancial Considerations - Inability or Unwillingness to Satisfy Debts
- E2.A6.1.2.3raisedFinancial Considerations - A History of Not Meeting Financial Obligations
- E2.A6.1.3.1rejectedFinancial Considerations - the Conditions That Resulted in the Financial Difficulties Were Beyond the Applicant's ControlThe applicant's financial difficulties were not the result of circumstances beyond his control.
- E2.A6.1.3.2rejectedFinancial Considerations - the Applicant Has a Good Track Record of Repaying DebtsThe applicant's acknowledged delinquencies involve long-standing debts.
- E2.A6.1.3.3rejectedFinancial Considerations - the Applicant Has Shown Evidence of Good Faith Efforts to Repay DebtsThe applicant failed to produce sufficient persuasive records to demonstrate that payment plans had been accepted by creditors.
- E2.A6.1.3.4rejectedFinancial Considerations - the Applicant Has Sought Financial CounselingThe applicant has not sought counseling for his financial problems.
- E2.A6.1.3.6rejectedFinancial Considerations - the Applicant Has Developed a Practical Plan for Resolving His IndebtednessThe applicant did not provide evidence of a practical plan for resolving his debts.
Key rule quoted
“"[N]o one has a 'right' to a security clearance."”
Procedural posture
- SOR issuedAug 11, 2003
- Answer filedSep 9, 2003Requested decision on the record.
- Hearing held—No hearing; decision based on the record.
- Decision dateMar 17, 2004
Cite for
- Denial of Security Clearance Due to Financial Overextension Under Guideline F
- Lack of Credible Evidence to Mitigate Financial Concerns
- Rejection of Mitigating Conditions Due to Ongoing Financial Difficulties