Summary
A 36-year-old computer system analyst employed by a defense contractor was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The applicant accrued significant debt, totaling $17,770, stemming from periods of unemployment and a delinquent car loan of $8,810.
Specific financial issues included a $93.69 debt to ABC FINANCIAL in collection since about May 1996, a $233 debt to ABC FINANCIAL SYSTEM/INSURANCE in collection since about April 1997, and two debts of $537 and $10 charged off as bad debt in about November and October 1998, respectively. Further debts included a $932 judgment entered in about June 2000, a $1,507 judgment entered in about July 2001, a $3,595 debt in collection since about November 2001, an $875 judgment entered in about February 2002, a $670 debt in collection since about October 2002, and a $972 debt in collection since about April 2004.
While the applicant demonstrated that some debts were either erroneous or satisfied, approximately $20,000 in remaining debt was not mitigated. The applicant's lack of knowledge about his finances at the time of his security clearance application did mitigate some personal conduct concerns. However, the government established a prima facie case for disqualification under Guideline F, leading to the denial of the clearance.
Why the Applicant Prevailed
- Applicant demonstrated that some debts were in error, satisfied, or in dispute.
- His lack of knowledge regarding his finances at the time of the security clearance application mitigated personal conduct concerns.
Conditions Referenced
- E2.A6.1.2.1raisedFinancial Considerations Disqualifying ConditionA history of not meeting financial obligations.
- E2.A6.1.2.3raisedFinancial Considerations Disqualifying ConditionInability or unwillingness to satisfy debts.
- E2.A6.1.3.3appliedFinancial Considerations Mitigating ConditionThe conditions that resulted in the behavior were largely beyond the person's control.
- E2.A6.1.3.6appliedFinancial Considerations Mitigating ConditionThe individual initiated a good-faith effort to repay overdue creditors or otherwise resolve debts.
- E2.A5.1.3.5appliedPersonal Conduct Mitigating ConditionThe individual has taken positive steps to significantly reduce or eliminate vulnerability to coercion, exploitation, or duress.
Key Rule Quoted
“The sole purpose of a security clearance determination is to decide if it is clearly consistent with the national interest to grant or continue a security clearance for an applicant.”
Procedural Posture
- SOR issuedMay 24, 2005
- Answer filedJun 16, 2005Applicant elected to have his case decided on the written record.
- Hearing held—No hearing; decided on the written record.
- Decision dateJun 16, 2006
Cite For
- Disqualifying Conditions Under Guideline F Due to Financial Considerations
- Mitigating Conditions Under Guideline E Related to Personal Conduct
- The Importance of Demonstrating Financial Responsibility in Security Clearance Evaluations.