Summary
A 44-year-old married woman with five children and a military background was denied a security clearance due to unresolved financial delinquencies. The case involved concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), primarily stemming from a failed business. While the judge found in favor of the applicant regarding personal conduct, the clearance was denied based on her inability to mitigate financial concerns.
The Statement of Reasons detailed several financial issues. These included a Chapter 7 bankruptcy discharged in 2011, outstanding payroll taxes from 2007 and 2008, and an unpaid state civil penalty of $105,574. Additionally, there was a federal tax lien for $66,728, a state tax lien for $17,899, an unpaid $709 cell phone debt, and a $51 unpaid medical bill.
The denial was based on the applicant's history of being unable or unwilling to meet financial obligations, which began in 2008 and continued to the present. The applicant did not provide sufficient evidence to demonstrate that her financial issues were being resolved or were under control, and she failed to submit documentary evidence corroborating her claims of payments made towards her debts.
Why the Applicant Was Denied
- The applicant has a history of being unable or unwilling to meet financial obligations, which began in 2008 and continues to the present.
- The applicant did not provide sufficient evidence to demonstrate that her financial issues were being resolved or were under control.
- The applicant failed to submit documentary evidence corroborating her claims of payments made towards her debts.
Conditions Referenced
- F.1.araisedInability to Satisfy Debts
- F.1.braisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- F.1.craisedA History of Not Meeting Financial Obligations
- F.2.arejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- F.2.brejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- F.2.crejectedThe Individual Has Received or Is Receiving Financial Counseling
- F.2.drejectedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors
- F.2.grejectedThe Individual Has Made Arrangements with the Appropriate Tax Authority to File or Pay the Amount Owed
Key Rule Quoted
“Any doubt concerning personnel being considered for national security eligibility will be resolved in favor of the national security.”
Procedural Posture
- SOR issuedJul 17, 2017
- Answer filedAug 25, 2017
- Hearing held—Decided on the written record without a hearing.
- Decision dateJun 28, 2018
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Insufficient Evidence of Financial Responsibility
- Consideration of Personal Conduct in Relation to Financial Issues