Summary
A 60-year-old senior procurement officer was denied a security clearance under Guideline F (Financial Considerations) due to seven delinquent debts totaling over $250,000. The Statement of Reasons detailed these debts, including two student loans totaling approximately $215,000, two bank credit card debts exceeding $24,000, a home equity line of credit for $9,295, and utility and U.S. government debts over $600.
The applicant attributed her financial difficulties to a catastrophic loss involving rental property. However, the judge found that she did not provide sufficient independent documentary evidence of debt payments, her current financial status, or a good-faith effort to resolve the debts.
Ultimately, the security clearance was denied due to ongoing financial irresponsibility and the lack of evidence to mitigate the concerns raised by the substantial delinquent debts.
Why the Applicant Was Denied
- The applicant has seven delinquent debts totaling over $250,000, including significant student loans and credit card debts.
- She did not provide independent documentary evidence of debt payments or a current financial status.
- The applicant failed to demonstrate a good-faith effort to resolve her debts or to seek financial counseling.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(b)raisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Unlikely to RecurThe applicant's debts remain delinquent and unresolved.
- AG ¶ 20(b)rejectedConditions Beyond the Person's ControlWhile the applicant cited circumstances beyond her control, the debts are still current and unresolved.
- AG ¶ 20(c)rejectedReceived Financial CounselingThe applicant did not provide evidence of financial counseling.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsThe applicant did not demonstrate a good-faith effort to resolve her debts.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute DebtsThe applicant did not provide evidence to dispute the legitimacy of her debts.
Key Rule Quoted
“"[N]o one has a ‘right’ to a security clearance." Department of the Navy v. Egan, 484 U.S. 518, 528 (1988).”
Procedural Posture
- SOR issuedMay 27, 2016
- Answer filedNot specified
- Hearing heldNot specifiedApplicant elected for a decision based on the administrative record.
- Decision dateApr 12, 2018
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations Under Guideline F
- Insufficient Evidence of Financial Responsibility and Debt Resolution
- Rejection of Mitigating Conditions Related to Financial Difficulties