Summary
The applicant, a 39-year-old pipefitter apprentice, faced issues under Guideline E (Personal Conduct) and Guideline F (Financial Considerations) due to significant delinquent debts totaling approximately $99,022.87, including a foreclosure on his home in 2002. Although he made some efforts to address his financial obligations, he still owed about $35,000 and lacked the means to resolve these debts in the near future. The judge found that while financial considerations were a concern, personal conduct issues were not proven due to a good faith misunderstanding regarding disclosure requirements. Consequently, the applicant's security clearance was denied.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: $450 in collection (1.a). $20,125 in collection (installment loan) (1.b). $326 in collection (telephone services) (1.c). $506 retail store revolving charge (1.d). $301.87 home improvement store revolving charge (1.e). $11,271 MasterCard account (1.f). $61,971 mortgage loan (1.g). $3,872 MasterCard account (1.h). $119 in collection (satellite television service) (1.i). $81 in collection (utility services) (1.j).
The judge denied the clearance. The government raised disqualifying conditions E2.A6.1.2.1, E2.A6.1.2.3. The judge applied mitigating conditions E2.A6.1.3.3, E2.A6.1.3.6. The decision turned on the following: The applicant has a history of excessive indebtedness and recurring financial difficulties; He still owes approximately $35,000 in delinquent debt and lacks the financial means to satisfy it in the near future; The applicant's financial problems are not resolved and are likely to recur.
Why the Applicant Was Denied
- The applicant has a history of excessive indebtedness and recurring financial difficulties.
- He still owes approximately $35,000 in delinquent debt and lacks the financial means to satisfy it in the near future.
- The applicant's financial problems are not resolved and are likely to recur.
Conditions Referenced
- E2.A6.1.2.1raisedA History of Not Meeting Financial Obligations
- E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts
- E2.A6.1.3.3rejectedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's ControlWhile factors beyond his control contributed to his financial problems, the applicant exercised poor financial judgment.
- E2.A6.1.3.6appliedThe Individual Initiated a Good Faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant made some efforts to resolve past due accounts before the SOR was issued.
Key Rule Quoted
“"[N]o one has a 'right' to a security clearance."”
Procedural Posture
- SOR issuedMay 3, 2005
- Answer filedMay 19, 2005
- Hearing heldOct 27, 2005
- Decision dateMay 26, 2006
Cite For
- Denial of Clearance Due to Significant Financial Obligations Under Guideline F
- Good Faith Misunderstanding in Financial Disclosures Under Guideline E
- Impact of Financial Irresponsibility on Security Clearance Eligibility