Summary
The applicant, a 62-year-old contracts manager for a defense contractor, faced security clearance denial under Guideline F due to unresolved financial issues totaling approximately $50,000. Despite some admissions regarding her financial difficulties, the applicant failed to provide sufficient evidence of efforts to mitigate these concerns, leading the judge to conclude that she did not demonstrate the reliability and trustworthiness required for a security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant has a delinquent automobile loan with a high credit of $30,623 of which $10,953 was charged off in May 2016 after the vehicle was repossessed (1.a). Applicant has a joint account with an unpaid balance of $8,368 for an assisted living facility where Applicant’s mother resided (1.b). Applicant has a note loan with an unpaid balance of $5,398 (1.c). Applicant has a bank credit-card account that was charged off in the amount of $4,296 (1.d). Applicant has two charge accounts with the same creditor that were charged off in the amounts of $2,461 and $1,910, with unpaid balances of $1,445 and $2,181 (1.e). Applicant has medical accounts with unpaid balances of $56, $250, $155, and $52 (1.f). Applicant has an unspecified type of account with an unpaid balance of $8,017, of which $5,089 is at least 120 days past due (1.g). Applicant has an unspecified type of account that was charged off in the amount of $4,432 (1.h). Applicant has a charge account with an unpaid balance of $1,081 that was charged off in December 2016 (1.i). Applicant has three credit-card accounts with the same bank with unpaid balances of $887, $459, and $402 (1.j).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(b). The decision turned on the following: The applicant had 20 delinquent accounts totaling approximately $50,000, with insufficient evidence of resolution or repayment plans; The applicant's claims of financial management were unverified and lacked supporting documentation; The applicant failed to demonstrate a meaningful track record of addressing her financial obligations.
Why the Applicant Was Denied
- The applicant had 20 delinquent accounts totaling approximately $50,000, with insufficient evidence of resolution or repayment plans.
- The applicant's claims of financial management were unverified and lacked supporting documentation.
- The applicant failed to demonstrate a meaningful track record of addressing her financial obligations.
Conditions Referenced
- AG ¶ 19(a)appliedInability to Satisfy Debts
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
Key Rule Quoted
“Eligibility for a security clearance is denied.”
Procedural Posture
- SOR issuedJun 7, 2019
- Answer filedJul 16, 2019
- Hearing held—Applicant elected to proceed on the written record.
- Decision dateDec 30, 2019
Cite For
- Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
- Insufficient Evidence of Financial Mitigation Efforts
- Importance of Documentary Evidence in Financial Cases