Summary
The applicant, a 37-year-old woman employed with a Department of Defense contractor, faced security clearance denial under Guideline E (Personal Conduct) and Guideline F (Financial Considerations) due to unresolved financial debts and a misleading statement regarding her bankruptcy repayment plan. Despite some efforts to address her debts, the applicant's financial irresponsibility and lack of candor during the investigation raised significant trustworthiness concerns, leading to the denial of her eligibility for a sensitive position.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant provided false information to an investigator regarding her Chapter 13 bankruptcy repayment plan, stating that she was current on her payments when she was actually behind (2.a). a $500 account owed to a loan company (1.b). a $100 account owed to a water company (1.c). a student loan account, approximate balance $12,000 (1.d). a $1,000 medical account (1.e). a $2,000 medical account (1.f). a $1,105 credit card account (1.g). a $14,873 automobile loan (1.h). a $10,000 automobile loan (1.i). a $3,000 mortgage account (1.j). a $700 credit card account (1.k). a $2,071 computer account (1.l).
The judge denied the clearance. The government raised disqualifying conditions F DC 19(a), F DC 19(c), E DC 16(b). The decision turned on the following: Applicant has unresolved debts totaling over $6,400 and a significant tax debt of approximately $24,672; Applicant provided a deliberately misleading statement to an investigator regarding her Chapter 13 bankruptcy repayment status; Applicant's financial problems were attributed to irresponsible spending and living beyond her means.
Why the Applicant Was Denied
- Applicant has unresolved debts totaling over $6,400 and a significant tax debt of approximately $24,672.
- Applicant provided a deliberately misleading statement to an investigator regarding her Chapter 13 bankruptcy repayment status.
- Applicant's financial problems were attributed to irresponsible spending and living beyond her means.
Conditions Referenced
- F DC 19(a)appliedInability or Unwillingness to Satisfy Debts
- F DC 19(c)appliedA History of Not Meeting Financial Obligations
- E DC 16(b)appliedDeliberately Providing False or Misleading Information
Key Rule Quoted
“The adjudicative process is an examination of a sufficient period of a person’s life to make an affirmative determination that the person is eligible for a security clearance.”
Procedural Posture
- SOR issuedFeb 1, 2007
- Answer filedMar 23, 2007Applicant elected to have her case decided on the written record.
- Hearing heldAug 29, 2007
- Decision dateSep 26, 2007
Cite For
- Trustworthiness Concerns Due to Financial Irresponsibility Under Guideline F
- Deliberate Misleading Statements Impacting Eligibility Under Guideline E
- Failure to Mitigate Financial Obligations and Personal Conduct Issues.