Summary
A 42-year-old defense contractor employee was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The denial stemmed from a history of financial difficulties, including bankruptcy, significant medical expenses, and a divorce that left him financially overextended.
The Statement of Reasons listed numerous delinquent debts, including multiple credit cards, medical bills, satellite TV, cable box, electric bills, and joint rent, totaling over $9,500. While the applicant provided a credible explanation for not disclosing these financial problems on his SF 86, the judge found that he did not adequately mitigate the security concerns.
Despite acknowledging that some financial difficulties were beyond the applicant's control, the judge determined he failed to demonstrate a good-faith effort to resolve his debts. The applicant did not seek financial counseling or consider re-filing for bankruptcy, indicating a lack of proactive measures to address his financial situation, ultimately leading to the denial of his security clearance.
Why the Applicant Was Denied
- The applicant has multiple delinquent debts totaling over $9,500 that are unresolved.
- The applicant's financial difficulties were exacerbated by circumstances beyond his control, but he failed to demonstrate a good-faith effort to resolve his debts.
- The applicant did not seek financial counseling or consider filing for bankruptcy again, indicating a lack of proactive measures to address his financial issues.
Conditions Referenced
- E2.A6.1.2.1raisedDC 1: History of Not Meeting Financial Obligations
- E2.A6.1.2.3raisedDC 3: Inability or Unwillingness to Satisfy Debts
- E2.A6.1.3.3appliedMC 3: Financial Difficulties Due to Conditions Largely Beyond the Person's Control
- E2.A6.1.3.4rejectedMC 4: Received Counseling for the ProblemThe applicant has not sought financial counseling.
- E2.A6.1.3.6rejectedMC 6: Good-faith Effort to Resolve DebtsThe applicant has been financially unable to mount any effort to resolve his delinquent 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 10, 2006
- Answer filedMar 4, 2006
- Hearing heldAug 22, 2006
- Decision dateOct 25, 2006
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations Under Guideline F
- Consideration of Mitigating Conditions Related to Financial Difficulties
- Burden of Proof on Applicant to Demonstrate Eligibility for Security Clearance