Summary
A 35-year-old defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to significant financial issues. The Statement of Reasons alleged she was financially overextended, potentially unreliable, and at risk of engaging in illegal acts for funds. Specifically, she had 16 debts, totaling approximately $38,709, that were charged-off or in collection.
These debts included $2,239 owed to a wireless telephone company, $1,173 for a medical debt, and $914 to a collection agency. Other past-due debts included $607 for unreturned satellite television equipment, $604 for medical services, $389 for utilities, $365 for telephone services, $314 for medical services, $307 for utilities, $206 for medical services, $192 for utilities, $87 for cable, and $66 for medical services. Additionally, she owed $20,902 to a bank for one repossessed automobile account and $9,648 to a lender for a second repossessed automobile account.
The applicant admitted to the over $38,000 in past-due debts and a history of bankruptcy. However, she failed to provide evidence of financial stability or plans to resolve her outstanding obligations. The judge concluded that her financial situation raised serious concerns about her reliability and trustworthiness, leading to the denial of her national security eligibility.
Why the Applicant Was Denied
- The applicant admitted to having over $38,000 in past-due debts and a history of bankruptcy.
- She provided no evidence of financial stability or plans to resolve her debts.
- The judge found her financial situation raised serious concerns about her reliability and trustworthiness.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened Long Ago or Under Unlikely Circumstances to RecurThe applicant did not demonstrate that her financial issues were unlikely to recur.
- AG ¶ 20(b)rejectedConditions Beyond the Person's ControlThe applicant did not provide sufficient evidence that her financial problems were beyond her control.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute Legitimacy of DebtThe applicant did not provide documented proof to substantiate any disputes regarding her debts.
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 issuedMay 4, 2022
- Answer filedMay 9, 2022Requested decision on written record.
- Hearing held—No hearing; decision based on written record.
- Decision dateMar 6, 2023
Cite For
- Financial Instability as a Disqualifying Factor Under Guideline F
- Lack of Evidence to Mitigate Financial Concerns
- Importance of Demonstrating Financial Responsibility for Security Clearance Eligibility