Summary
A 49-year-old defense contractor employee was denied a security clearance due to significant financial difficulties under Guideline F (Financial Considerations). The Statement of Reasons (SOR) detailed multiple delinquent debts totaling approximately $44,066. These included a federal tax lien of $13,232 from 2002, a $19,000 debt from a repossessed truck, and various other delinquent credit card, bank, medical, and utility debts ranging from $57 to $1,592. A judgment of $1,204 was also entered against the applicant.
Disqualifying conditions F.19(a) and F.19(c) were raised, while mitigating conditions F.20(b), F.20(c), F.20(d), and F.20(e) were considered. However, the judge found that the applicant had not sufficiently mitigated the financial concerns.
The denial was based on the applicant's failure to resolve the largest debts, the ongoing nature of her financial issues, and contradictory evidence regarding the federal tax lien, which she did not substantiate with documented proof. Despite some efforts to address her debts, the judge concluded that the financial concerns remained unmitigated.
Why the Applicant Was Denied
- The applicant has not resolved the largest debts alleged in the SOR.
- Her financial issues are ongoing and have not been fully addressed.
- The applicant provided contradictory evidence regarding the federal tax lien and failed to substantiate her dispute with documented proof.
Conditions Referenced
- F.19(a)raisedInability or Unwillingness to Satisfy Debts
- F.19(c)raisedA History of Not Meeting Financial Obligations
- F.20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlApplicant's unemployment and divorce contributed to her financial difficulties.
- F.20(d)appliedGood-faith Effort to Repay Overdue CreditorsApplicant has made payments or arrangements for a large percentage of her delinquent debts.
- F.20(c)appliedReceived or Is Receiving Counseling for the ProblemApplicant has received financial counseling from a friend.
- F.20(e)appliedReasonable Basis to Dispute the Legitimacy of the Past-due DebtApplicant disputed certain debts and provided evidence of her actions to resolve them.
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 issuedJan 27, 2009
- Answer filedFeb 25, 2009
- Hearing heldJun 24, 2009
- Decision date—
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Impact of Financial Difficulties on Security Clearance Eligibility
- Importance of Substantiating Disputes Regarding Debts in Security Clearance Cases