Summary
A 43-year-old detective and federal contractor was denied a security clearance under Guideline F (Financial Considerations) due to unresolved financial issues. The Statement of Reasons (SOR) alleged a 2008 bankruptcy, five delinquent student loans, and eight delinquent medical debts, totaling $43,306, with $38,989 attributed to past-due student loans in collection. The applicant admitted all allegations in her September 10, 2018, answer to the SOR.
She explained that the bankruptcy was advised for their small business after she became ill in 2007-2008. She also stated her intent to commit funds to medical debts and begin the resolution process on September 10, 2018, noting a health condition requiring specialized hospital travel.
Despite acknowledging her financial difficulties and entering a debt-management agreement, the applicant failed to provide sufficient evidence of financial responsibility or progress in addressing her debts. The judge concluded that the applicant did not mitigate the security concerns, leading to the denial of her security clearance.
Why the Applicant Was Denied
- The applicant failed to demonstrate sufficient evidence of financial responsibility.
- The applicant did not provide documentation of payments or progress in resolving her debts.
- The applicant's financial issues were longstanding and unresolved despite her claims of intent to address them.
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 ¶ 20(c)rejectedThe Individual Has Received or Is Receiving Financial CounselingThe applicant provided evidence of financial counseling but did not demonstrate that the financial problems were being resolved.
- AG ¶ 20(d)rejectedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue CreditorsThe applicant's statements of intent to repay were not supported by documentary evidence of actual payments.
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 issuedAug 29, 2018
- Answer filedSep 10, 2018
- Hearing held—Decided on the written record.
- Decision dateFeb 14, 2019
Cite For
- Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
- Insufficient Evidence of Financial Responsibility Despite Claims of Intent to Resolve Debts
- Importance of Providing Documentary Evidence to Support Claims of Financial Mitigation