Summary
A 48-year-old college graduate and government contractor was denied a security clearance under Guideline F (Financial Considerations) due to excessive indebtedness and gambling. The Statement of Reasons alleged delinquency on four accounts totaling approximately $35,688, and that her online gambling contributed to these financial issues. She filed for Chapter 13 bankruptcy in July 2016.
Disqualifying conditions F.1.a, F.1.c, and F.1.h were raised, while mitigating conditions F.2.a, F.2.b, F.2.c, and F.2.d were applied. However, the applicant failed to mitigate the security concerns.
The denial was based on her continued gambling despite the bankruptcy filing and her inability to provide evidence of being current on her repayment plan. She did not demonstrate that her financial problems were unlikely to recur or that she had acted responsibly regarding her debts.
Why the Applicant Was Denied
- The applicant failed to mitigate security concerns related to excessive indebtedness and gambling.
- She continued to gamble despite filing for Chapter 13 bankruptcy and did not provide evidence of being current on her repayment plan.
- The applicant did not demonstrate that her financial problems were unlikely to recur or that she acted responsibly regarding her debts.
Conditions Referenced
- F.1.araisedInability to Satisfy Debts
- F.1.craisedA History of Not Meeting Financial Obligations
- F.1.hraisedBorrowing Money or Engaging in Significant Financial Transactions to Fund Gambling or Pay Gambling Debts
- F.2.arejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurThe applicant's financial problems are ongoing and she continues to gamble.
- F.2.brejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlWhile the applicant's grief was beyond her control, she did not act reasonably with respect to her debts.
- F.2.crejectedThe Individual Has Received or Is Receiving Financial CounselingThe applicant produced no evidence of effective financial counseling.
- F.2.drejectedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue CreditorsThe applicant did not demonstrate a good-faith effort to resolve her debts.
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 issuedAug 25, 2017
- Answer filedSep 20, 2017Applicant initially requested a decision based on the written record.
- Hearing heldJan 23, 2018Hearing convened as scheduled.
- Decision dateJul 10, 2018
Cite For
- Denial of Security Clearance Due to Ongoing Gambling Addiction and Financial Irresponsibility
- Failure to Demonstrate Effective Financial Management Post-bankruptcy
- Impact of Personal Circumstances on Financial Behavior and Security Eligibility