Summary
A 36-year-old software systems engineer was denied a security clearance under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The denial stemmed from approximately $117,000 in unpaid debts, primarily from a failed business venture, which included sales financing, telephone fees, and multiple credit card obligations, some of which had gone to collections.
Despite current employment and a good income, the applicant made little effort to resolve these significant financial obligations. The government established its case under Guideline F, citing the applicant's history of excessive, unpaid debt and his unwillingness to take responsibility for these debts.
The applicant's strategy to wait for the statute of limitations to expire on his debts raised concerns about his trustworthiness and responsibility, leading to the denial of his security clearance.
Why the Applicant Was Denied
- The applicant has a history of excessive, unpaid debt totaling approximately $117,000, which he has not made efforts to resolve.
- The applicant's unwillingness to take responsibility for his debts and his strategy to wait for the statute of limitations to expire raises questions about his trustworthiness.
- The government established its case under Guideline F, demonstrating the applicant's financial problems as a security risk.
Conditions Referenced
- E2.A6.1.2.1raisedA History of Not Meeting Financial Obligations
- E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts
- E2.A6.1.3.1rejectedThe Behavior Was Not Recent
- E2.A6.1.3.2rejectedIt Was an Isolated Incident
- E2.A6.1.3.3rejectedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's Control
- E2.A6.1.3.4rejectedThe Person Has Received or Is Receiving Counseling for the Problem and There Are Clear Indications That the Problem Is Being Resolved or Is Under Control
- E2.A6.1.3.6appliedThe Individual Initiated a Good Faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant attempted to resolve some debts but did not make a good faith effort to address the majority of his financial obligations.
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 issuedJan 30, 2006
- Answer filedApr 14, 2005
- Hearing heldSep 21, 2006Applicant waived the 15-day notice requirement.
- Decision dateNov 27, 2006
Cite For
- Denial of Clearance Due to Significant Unpaid Debts Under Guideline F
- Lack of Mitigating Circumstances for Financial Issues
- Insufficient Evidence of Personal Conduct Issues Under Guideline E