Summary
The applicant, a 27-year-old outside electrician employed by a defense contractor, faced issues under Guideline E (Personal Conduct) and Guideline F (Financial Considerations) due to a history of financial irresponsibility and delinquent debts totaling approximately $11,963.05. Although he made efforts to repay some debts, the judge found that his financial difficulties were not sufficiently resolved, and his omission of debts from his security clearance application was deemed a misunderstanding rather than intentional falsification. Consequently, the application for a security clearance was denied.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: A credit card account opened in May 2000 was charged off in the amount of $899 and transferred (¶ 1.a.). As of June 2004, the debt balance was $1,140 (1.a). A revolving credit card account opened in December 1999 was placed for collection in April 2000 with $2,436 past due (¶ 1.b.). As of February 2004, the debt balance was $2,661. By June 2004, it had been placed with another assignee, who reported a balance of $2,709 (1.b). In September 2000, a $352.43 judgment was awarded a medical provider against Applicant (¶ 1.c.) (1.c). In about October 2000, Applicant had an unpaid $222 natural gas debt that was placed for collection (¶ 1.d.) (1.d). In November and December 1998, Applicant took out student loans of $2,625 (SOR ¶ 1.e.) and $4,000 (¶ 1.f.), respectively, from the same lender to finance his college studies. Applicant attended a local university for a year and a half with repayment of his loans deferred during that time. He failed to make any payments on the loans when they became due, and he was considered in default in January 2001 (1.e). In November and December 1998, Applicant took out student loans of $2,625 (SOR ¶ 1.e.) and $4,000 (¶ 1.f.), respectively, from the same lender to finance his college studies. Applicant attended a local university for a year and a half with repayment of his loans deferred during that time. He failed to make any payments on the loans when they became due, and he was considered in default in January 2001 (1.f).
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.A6.1.3.6. The decision turned on the following: The applicant had a history of excessive indebtedness and recurring financial difficulties; As of the decision date, the applicant was still behind on current financial obligations; The applicant's financial decisions, including a vacation and home improvements, raised concerns about his financial judgment.
Why the Applicant Was Denied
- The applicant had a history of excessive indebtedness and recurring financial difficulties.
- As of the decision date, the applicant was still behind on current financial obligations.
- The applicant's financial decisions, including a vacation and home improvements, raised concerns about his financial judgment.
Conditions Referenced
- E2.A6.1.2.1raisedA History of Not Meeting Financial Obligations
- E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts
- E2.A6.1.3.6appliedThe Individual Initiated a Good Faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“"[N]o one has a 'right' to a security clearance."”
Procedural Posture
- SOR issuedNov 14, 2005
- Answer filedDec 9, 2005
- Hearing heldMar 3, 2006
- Decision dateMay 12, 2006
Cite For
- Denial of Clearance Due to Unresolved Financial Obligations
- Misunderstanding of Financial Inquiries on SF 86
- Good Faith Efforts to Resolve Debts Not Sufficient to Mitigate Financial Concerns