Summary
A 51-year-old administrative assistant was denied a security clearance under Guideline F (Financial Considerations) due to significant unresolved delinquent debts totaling $94,883. The Statement of Reasons detailed numerous financial issues, including multiple apartment-rental accounts with judgments or in collection, totaling $6,334. Additionally, there were five medical accounts, some with judgments and others in collection, amounting to $32,320.
Further financial concerns included a $29,154 federal tax lien, two State A tax liens totaling $6,379, and a $10,576 federal student loan in collection. The applicant also owed $8,341 after an automobile repossession, had a $1,047 charged-off furniture account, and a $782 cell-phone bill in collection. Other issues included a 2005 Chapter 7 bankruptcy discharged in 2006, unauthorized use of a company travel card for personal expenses totaling approximately $1,300, and past misdemeanor convictions for credit-card fraud, credit-card theft, and issuing a bad check.
Despite the applicant's claims of improved financial management and counseling, the judge determined that she did not sufficiently demonstrate responsible actions to resolve her debts. The denial was based on the substantial unresolved delinquent debts, the failure to provide corroborating documentation for claims of financial responsibility, and the finding that her financial problems were not under control.
Why the Applicant Was Denied
- The applicant has substantial unresolved delinquent debts totaling $94,883.
- The applicant failed to provide corroborating documentation to support claims of financial responsibility and debt resolution.
- The applicant's financial problems were not deemed under control despite claims of improvement.
Conditions Referenced
- AG ¶ 19(a)appliedInability to Satisfy Debts
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 19(e)appliedConsistent Spending Beyond One's Means
- AG ¶ 19(f)appliedFailure to Pay Annual Federal, State, or Local Income Tax as Required
- AG ¶ 20(a)rejectedBehavior Happened Long Ago or InfrequentlyThe applicant's financial-related crimes are unlikely to recur but her substantial delinquent debt remains unresolved.
- AG ¶ 20(b)rejectedConditions Beyond the Person's ControlWhile some circumstances were beyond her control, the applicant did not demonstrate responsible actions to address the resulting debts.
- AG ¶ 20(c)rejectedReceived Financial CounselingThe applicant did not provide corroborating documentation to conclude that her financial problems are under control.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsThe applicant did not provide evidence of payments or agreements with creditors.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute DebtsThe applicant did not provide documented proof to substantiate her disputes.
- AG ¶ 20(g)notedArrangements with Tax Authority
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the AG.”
Procedural Posture
- SOR issuedFeb 29, 2016
- Answer filedMar 21, 2016
- Hearing heldMar 1, 2017Hearing convened as scheduled.
- Decision dateJul 19, 2017
Cite For
- Denial Based on Substantial Unresolved Financial Obligations Under Guideline F
- Failure to Demonstrate Responsible Financial Management Despite Claims of Improvement
- Impact of Past Financial Misconduct on Current Security Clearance Eligibility.