Summary
The applicant, a 28-year-old security officer with a secret clearance, sought a top secret clearance under Guideline F due to financial difficulties. Despite some efforts to address her debts, the applicant failed to demonstrate sufficient financial responsibility, leading to the denial of her security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: a judgment in the amount of $2,113 against Applicant in July 2007 (1.a). a judgment in the amount of $8,608 against Applicant in May 2007 in favor of her former landlord for back rent (1.b). a collection account for $978 for cable services (1.c). a collection account for $112 for cable services (1.e). a collection account for $179 for an undefined service provided to Applicant while she was in the Army (1.f). a collection account for $342 for telephone services (1.g). charged off accounts for $8,899 to the same credit union (1.h). charged off accounts for $500 to the same credit union (1.i). a charged off account for $9,502 to a different credit union (1.j). a collection account for $976 for cell phone services (1.k). a collection account for $3,036 to a state college for tuition (1.l). a collection account for $161 to an insurance company (1.m).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), AG ¶ 20(e). The decision turned on the following: The applicant has a history of failing to meet financial obligations, accumulating substantial debt of approximately $35,000; The applicant presented minimal evidence of efforts to resolve debts, with most debts remaining unresolved; The applicant's financial problems are ongoing and indicative of poor financial management.
Why the Applicant Was Denied
- The applicant has a history of failing to meet financial obligations, accumulating substantial debt of approximately $35,000.
- The applicant presented minimal evidence of efforts to resolve debts, with most debts remaining unresolved.
- The applicant's financial problems are ongoing and indicative of poor financial management.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant experienced brief unemployment after military discharge and family deaths.
- AG ¶ 20(c)appliedThe Person Has Received or Is Receiving Counseling for the ProblemThe applicant sought financial counseling.
- AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant resolved some debts and was a victim of identity theft.
- AG ¶ 20(e)appliedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant successfully contested one debt due to identity theft.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedApr 16, 2008
- Answer filedMay 15, 2008
- Hearing heldJul 23, 2008
- Decision dateSep 30, 2008
Cite For
- Failure to Mitigate Financial Considerations Under Guideline F
- Ongoing Financial Mismanagement as a Basis for Denial
- Importance of Demonstrating a Track Record of Financial Responsibility for Security Clearance Eligibility.