Summary
The applicant, a 38-year-old employee of a Department of Defense contractor, sought a security clearance under Guideline F due to financial considerations. She admitted to having multiple delinquent debts totaling approximately $25,645, primarily resulting from her divorces. The judge found that while some debts were brought current, significant unresolved debts remained, leading to a denial of the security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: $8,735 credit card account charged off in October 2008 (1.a). $8,393 credit card account charged off in November 2008 (1.b). $7,934 credit card account charged off in October 2008 (1.c). a credit card account with a balance of $2,103 that was delinquent in the amount of $130 (1.d). a credit card account with a balance of $717 that was past due in the amount of $65 (1.e). a credit card account with a balance of $622 that was past due in the amount of $69 (1.f). a credit card account with a balance of $620 that was past due in the amount of $53 (1.g). a credit card account with a balance of $490 that was past due in the amount of $61 (1.h). a jewelry store credit card account with a balance of $433 that was past due in the amount of $115 (1.i). a $52 medical account (1.j). a $38 medical account (1.k).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), AG ¶ 20(e). The decision turned on the following: The applicant has a history of unresolved delinquent debts totaling $25,100; The applicant's explanation for not resolving her largest debts was deemed implausible; The applicant did not provide sufficient information regarding her overall financial situation.
Why the Applicant Was Denied
- The applicant has a history of unresolved delinquent debts totaling $25,100.
- The applicant's explanation for not resolving her largest debts was deemed implausible.
- The applicant did not provide sufficient information regarding her overall financial situation.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedHistory of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened Long Ago or InfrequentlyMost delinquent debts are now current, but the three largest debts remain unresolved.
- AG ¶ 20(b)rejectedConditions Beyond ControlWhile divorce contributed to financial issues, the applicant did not take steps to resolve the largest debts.
- AG ¶ 20(c)rejectedReceived Counseling or Evidence of ResolutionNo evidence of financial counseling was provided.
- AG ¶ 20(d)appliedGood-faith Effort to Repay DebtsThe applicant made efforts to bring some debts current.
- AG ¶ 20(e)rejectedDispute Legitimacy of DebtThe applicant did not substantiate her dispute of the medical debts.
Key Rule Quoted
“Failure to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness and ability to protect classified information.”
Procedural Posture
- SOR issuedAug 5, 2014
- Answer filedAug 12, 2015Applicant requested decision on written record.
- Hearing held—No hearing; decision based on written record.
- Decision dateJun 23, 2015
Cite For
- Denial Based on Unresolved Financial Obligations Under Guideline F
- Importance of Providing Comprehensive Financial Information
- Impact of Personal Circumstances on Financial Stability