Summary
The applicant, a 40-year-old machinist with a history of financial difficulties, faced security concerns under Guideline F (Financial Considerations) due to multiple bankruptcies and delinquent debts. Despite her claims of medical issues affecting her financial situation, the judge found insufficient evidence of responsible actions to resolve her debts, leading to a denial of her security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant incurred four delinquent loans for $7,102; $5,145; $2,784; and $2,307 (1.a). Applicant incurred four delinquent loans for $7,102; $5,145; $2,784; and $2,307 (1.b). Applicant incurred four delinquent loans for $7,102; $5,145; $2,784; and $2,307 (1.c). Applicant incurred four delinquent loans for $7,102; $5,145; $2,784; and $2,307 (1.d). Applicant has six delinquent medical bills for $709 (1.e). Applicant has a collection account for $656 (1.f). Applicant has a collection account for $583 (1.g). Applicant has six delinquent medical bills for $483 (1.h). Applicant has a collection account for $393 (1.i). Applicant has six delinquent medical bills for $189 (1.j). Applicant has six delinquent medical bills for $152 (1.k). Applicant has six delinquent medical bills for $50 (1.l). Applicant filed a Chapter 7 bankruptcy petition in June 2000 and received a discharge in October 2000 (1.m). Applicant filed another Chapter 7 bankruptcy petition in December 2010 and received a discharge in March 2011 (1.n). Applicant has six delinquent medical bills for $476 (1.p). Applicant has a delinquent state tax debt for $1,483 (1.q). Applicant was arrested and charged with petit larceny in February 2016 (1.r).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(b), AG ¶ 19(c), AG ¶ 19(f). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), AG ¶ 20(e), AG ¶ 20(g). The decision turned on the following: Applicant admitted to multiple bankruptcies and numerous delinquent debts; She failed to demonstrate significant actions to resolve her financial issues or to seek financial counseling; The judge found that her financial irresponsibility raised concerns about her reliability and trustworthiness.
Why the Applicant Was Denied
- Applicant admitted to multiple bankruptcies and numerous delinquent debts.
- She failed to demonstrate significant actions to resolve her financial issues or to seek financial counseling.
- The judge found that her financial irresponsibility raised concerns about her reliability and trustworthiness.
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(f)raisedFailure to File or Fraudulently Filing Annual Federal, State, or Local Income Tax Returns or Failure to Pay Annual Federal, State, or Local Income Tax as Required
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- AG ¶ 20(c)rejectedReceived Financial Counseling From a Legitimate and Credible Source
- 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
- AG ¶ 20(g)rejectedMade Arrangements with the Appropriate Tax Authority to File or Pay the Amount Owed
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedDec 15, 2017
- Answer filedFeb 1, 2018
- Hearing heldMay 24, 2018
- Decision dateAug 16, 2018
Cite For
- Denial Based on Financial Irresponsibility Under Guideline F
- Insufficient Evidence of Mitigating Circumstances for Financial Issues
- Importance of Demonstrating Good-faith Efforts to Resolve Debts in Security Clearance Cases.