Summary
A 58-year-old project coordinator was denied a security clearance due to significant financial considerations under Guideline F. The denial stemmed from a long history of financial irresponsibility, including two bankruptcies and numerous delinquent debts totaling over $41,000.
Specific allegations included two Chapter 13 bankruptcies filed in November 1989 and February 1990, with the latter closing in October 1994. A Chapter 7 bankruptcy was filed in March 1998, with debts discharged in June 1998. Additionally, the applicant had dishonored checks to a grocery store and accumulated a substantial number of medical and other debts. While some debts, such as Credit Card I, Telephone Company M, Neurology Debt, Hospital CC, and Laboratory NN, were paid off in May or June 2005, and a payment was made on Medical Group MM, many others remained outstanding.
The decision highlighted that despite some recent payments, the applicant had not demonstrated sufficient financial rehabilitation or a good-faith effort to resolve the majority of his debts. Consequently, the application for a security clearance was denied.
Why the Applicant Was Denied
- Applicant has a history of financial irresponsibility dating back to the late 1980s.
- He has two bankruptcies (Chapter 13 in 1990 and Chapter 7 in 1998) and currently owes delinquent debts on at least 41 accounts.
- Recent efforts to address debts are insufficient to demonstrate financial rehabilitation.
Conditions Referenced
- F1appliedA History of Not Meeting Financial Obligations
- F3appliedInability or Unwillingness to Satisfy Debts
Key Rule Quoted
“A person seeking access to classified information enters into a fiduciary relationship with the Government based upon trust and confidence.”
Procedural Posture
- SOR issuedJan 14, 2005
- Answer filedFeb 27, 2005Applicant elected for a hearing.
- Hearing heldMay 25, 2005
- Decision dateAug 2, 2005
Cite For
- Financial Irresponsibility Leading to Security Clearance Denial
- Insufficient Evidence of Financial Rehabilitation
- Impact of Multiple Bankruptcies on Security Clearance Eligibility