Summary
The applicant, a 43-year-old defense contractor employee, faced security clearance denial under Guideline F due to significant financial delinquencies totaling over $30,000. Despite some efforts to settle debts, the applicant failed to provide adequate documentation demonstrating financial responsibility, leading the judge to conclude that the financial issues raised substantial security concerns.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant admits that she owed a past-due debt to Creditor A in the amount of $13,175, as the result of an automobile repossession (1.a). Applicant admits that she owed a past-due debt to Creditor B in the amount of $2,037 (1.b). Applicant admits that she owes a past-due debt to Creditor C in the amount of $1,856 (1.c). Applicant admits that she owes a past-due debt to Creditor D in the amount of $315 (1.d). Applicant admits that she owes a past-due debt to Creditor E in the amount of $305 (1.e). Applicant admits that she owes past-due student loans to Creditor F in an amount totaling about $13,888 (1.f). Applicant admits that she owed a past-due debt to Creditor I in the amount of $210 (1.i). Applicant admits that she owed a past-due debt to Creditor J in the amount of $848 (1.j). Applicant admits that she owed a past-due debt to Creditor K in the amount of $502 (1.k). Applicant admits that she owed a past-due debt to Creditor L in the amount of $439 (1.l). Applicant admits that she owes past-due medical debts to Creditor M in an amount totaling about $129 (1.m). Applicant admits that she owes a past-due medical debt to Creditor N in an amount of about $114 (1.n). Applicant denies that she owes a past-due debt to Creditor O in an amount of about $60 (1.o).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(b), AG ¶ 19(c), AG ¶ 19(e). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), AG ¶ 20(e). The decision turned on the following: The applicant admitted to multiple financial delinquencies totaling over $30,000; The applicant failed to provide sufficient documentation to demonstrate financial responsibility; The applicant's ongoing financial problems and history of delinquencies were not mitigated by any applicable conditions.
Why the Applicant Was Denied
- The applicant admitted to multiple financial delinquencies totaling over $30,000.
- The applicant failed to provide sufficient documentation to demonstrate financial responsibility.
- The applicant's ongoing financial problems and history of delinquencies were not mitigated by any applicable conditions.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(b)raisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(e)raisedConsistent Spending Beyond One's Means or Frivolous or Irresponsible Spending
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to Recur
- AG ¶ 20(b)rejectedConditions Resulting in Financial Problems Were Largely Beyond the Person's Control
- AG ¶ 20(c)rejectedReceived or Is Receiving Financial Counseling
- AG ¶ 20(d)rejectedInitiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors
- AG ¶ 20(e)rejectedReasonable Basis to Dispute the Legitimacy of the Past-due Debt
Key Rule Quoted
“Failure to live within one's means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual's reliability, trustworthiness, and ability to protect classified or sensitive information.”
Procedural Posture
- SOR issuedFeb 1, 2019
- Answer filedFeb 25, 2019
- Hearing heldMay 7, 2019record left open until July 8, 2019
- Decision dateSep 9, 2019
Cite For
- Denial of Security Clearance Due to Financial Delinquencies Under Guideline F
- Failure to Demonstrate Financial Responsibility Despite Efforts to Settle Debts
- Application of Disqualifying Conditions Related to Financial Considerations