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Summary

The applicant, a 53-year-old employed in the security field since 2004, faced security concerns under Guideline F due to 19 delinquent debts totaling approximately $37,000, a dismissed Chapter 13 bankruptcy, and a history of gambling. The judge found that the applicant failed to demonstrate sufficient efforts to resolve her financial issues, leading to a denial of her security clearance application.

Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Student Loan account for $19,653. Delinquent since 2012. Applicant made $5 payments per week for one year, but fell behind after program expired. In September 2016, Applicant received temporary forbearance pending approval of income-based repayment plan. Efforts made to pay under past repayment plan, but fell into delinquency at the conclusion. Renewed efforts to obtain payment plan since hearing, but no documentary evidence of a final plan and payments submitted. Not resolved (1.a). Check to casino with insufficient funds for $107. No payments made toward delinquent debt. Not resolved (1.i). Judgment for unpaid rent from 2009 for $6,165. Applicant’s partner left rental and stopped contributing to payments. No payments made toward judgement. Not resolved (1.k). Returned check with insufficient funds for $109. No payment made, Not resolved (1.n). Collection for unpaid rent for $5,444. Applicant left home because of domestic violence. No resolution on collection account. Not resolved (1.q). Debt to electric utility for $132. Applicant paid up to date to get utility reinstated. Resolved (1.r). Applicant filed Chapter 13 Bankruptcy in 2006, which was dismissed in 2008 for failure to complete the repayment plan (1.t). Applicant gambled one to two times per month from 2006 – 2008 to escape her abusive spouse, and continued on occasion until 2014. She received treatment for depression, which included discussion of her gambling. She currently gambles on occasion at casino slot machines (1.u). In 2011, Applicant improperly used her corporate credit card to charge personal items such as fuel and tires for her car. She acknowledged violating company policy but believed she had no other option than to use the card in order to repair her car to get to work. She immediately paid $574 to reimburse the creditor (1.v).

The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(b), AG ¶ 19(d). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d). The decision turned on the following: Applicant has 19 delinquent debts totaling approximately $37,000, with no payments made toward most of them; Applicant's Chapter 13 bankruptcy was dismissed due to failure to complete the repayment plan; Applicant's gambling history and improper use of a corporate credit card indicate poor financial management.

Why the Applicant Was Denied

• Applicant has 19 delinquent debts totaling approximately $37,000, with no payments made toward most of them.
• Applicant's Chapter 13 bankruptcy was dismissed due to failure to complete the repayment plan.
• Applicant's gambling history and improper use of a corporate credit card indicate poor financial management.

Conditions Referenced

Key Rule Quoted

“The protection of the national security is the paramount consideration.”

Procedural Posture

• SOR issuedSep 3, 2015
• Answer filedNov 12, 2015
• Hearing heldSep 14, 2016Hearing convened as scheduled.
• Decision dateDec 8, 2016

Cite For

• Denial of Security Clearance Due to Unresolved Financial Obligations
• Impact of Gambling on Financial Responsibility Under Guideline F
• Consideration of the Whole-person Concept in Security Clearance Determinations