Summary
Applicant is a 37-year-old married defense contractor with 24 delinquent debts dating from 1996 to 2002. He is making payments on four debts but denies responsibility for the remaining 20, claiming he cannot remember them or that they are too old. The judge found that the applicant failed to meet his burden of proof to mitigate the financial concerns, resulting in a denial of his security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Medical center, $459 from 1996 (1.a). Physician bill, $33 from 1996 (1.b). Emergency room bill, $120 from 1996 (1.c). Bad check at store, $56 from 1996 (1.d). Credit union, $14,078 from 1997 (1.e). City debt for $108 from 1998 (1.g). Collection for $6,366 from 1998 (1.h). Radiologist bill for $58 from 1998 (1.i). Telephone company, $985, 1999 (1.j). Medical center, $835, from 1999 (1.k). Credit management, $37 from 2000 (1.n). Defense Accounting, $331 in 2001 (1.o). Defense Accounting, $248 in 2001 (1.p). Hospital debt, $205 from 2001 (1.q). Medical clinic, $1,410 from 2001 (1.r). Bank credit card, $602, from 2002 (1.s). Bank credit card, $2,513 from 2002 (1.t). Credit union, $1,852 from 2002 (1.u). Cable Television, $187 from 2002 (1.v). Finance company, $1,033 from 2002 (1.w). Physician bill, $130 from 2002 (1.x).
The judge denied the clearance. The government raised disqualifying conditions E2.A6.1.2.1, E2.A6.1.2.3. The decision turned on the following: Applicant has a history of not meeting financial obligations; Applicant displayed a lackadaisical effort to identify and pay his debts; Applicant did not provide substantial evidence of efforts to mitigate his financial issues.
Why the Applicant Was Denied
- Applicant has a history of not meeting financial obligations.
- Applicant displayed a lackadaisical effort to identify and pay his debts.
- Applicant did not provide substantial evidence of efforts to mitigate his financial issues.
Conditions Referenced
- E2.A6.1.2.1appliedDC 1: A History of Not Meeting Financial Obligations
- E2.A6.1.2.3appliedDC 3: Inability or Unwillingness to Satisfy Debts
Key Rule Quoted
“An applicant "has the ultimate burden of demonstrating that it is clearly consistent with the national interest to grant or continue his security clearance."”
Procedural Posture
- SOR issuedFeb 24, 2005
- Answer filedMay 13, 2005Applicant requested decision on written record.
- Hearing held—No hearing; decided on written record.
- Decision dateJan 30, 2006
Cite For
- Denial Based on Financial Irresponsibility Under Guideline F
- Burden of Proof on Applicant to Mitigate Financial Concerns
- Lack of Substantial Evidence of Debt Repayment Efforts