Summary
A 68-year-old senior administrative assistant with a long career in defense contracting was denied a security clearance under Guideline F (Financial Considerations) due to significant unresolved financial issues. The applicant faced allegations concerning 67 delinquent debts, including four foreclosed properties, 25 judgments totaling $624,388, 13 tax debts amounting to $52,130, 24 repossessed properties valued at $1,135,000, and a charged-off credit card debt of $7,675.
The Statement of Reasons further noted the applicant's failure to provide proof that tax liens were satisfied or other deficiencies paid, and that numerous judgments, tax liens, and other debts remained unresolved. While the applicant attributed some debts to her ex-husband, she did not adequately detail which debts were hers versus his.
Despite the application of mitigating conditions F.20(b), F.20(d), and F.20(e), the clearance was denied. The denial was based on the applicant's failure to document resolution or control of her debts, the recent and extensive nature of her financial issues indicating a lack of responsible management, and her inability to demonstrate a good-faith effort to repay creditors or resolve her obligations.
Why the Applicant Was Denied
- The applicant failed to provide documentation proving that her debts were resolved or under control.
- The applicant's financial issues were recent and extensive, indicating a lack of responsible management of her financial obligations.
- The applicant did not demonstrate a good-faith effort to repay creditors or resolve her debts.
Conditions Referenced
- F.19(a)raisedInability or Unwillingness to Satisfy Debts
- F.19(c)raisedA History of Not Meeting Financial Obligations
- F.20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlThe applicant was aware of the legal documents she signed and accepted properties as part of the divorce settlement.
- F.20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant did not provide evidence of a good-faith effort to resolve her debts.
- F.20(e)rejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant failed to provide documentation to substantiate her disputes regarding the debts.
Key Rule Quoted
“Failure or inability 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 issuedFeb 12, 2009
- Answer filedMar 6, 2009
- Hearing heldMay 24, 2010
- Decision dateJun 22, 2010
Cite For
- Failure to Provide Documentation to Support Claims of Financial Resolution
- Recent and Extensive Financial Issues Indicating Lack of Responsible Management
- Insufficient Evidence of Good-faith Efforts to Resolve Debts