Summary
A 39-year-old database administrator was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The Statement of Reasons detailed a history of financial difficulties, including four Chapter 13 bankruptcy petitions filed between April 2001 and April 2006, all of which were dismissed for non-payment. One of these petitions was also dismissed for failure to appear at a creditor’s meeting, and another was dismissed because it was filed within 180 days of an earlier dismissal. Additionally, the applicant filed a Chapter 7 bankruptcy in January 2008, which was discharged in April 2008.
A significant concern under Guideline E was the applicant's falsification of her SF 86, as she disclosed only one of her bankruptcy filings despite the multiple petitions. The judge found that the applicant did not adequately mitigate the security concerns related to her extensive financial history.
Ultimately, the security clearance was denied because the applicant failed to mitigate the concerns under Guideline F, specifically regarding her numerous and recent bankruptcy filings dismissed for non-payment. These issues raised doubts about her current reliability and good judgment, leading to the denial of her application.
Why the Applicant Was Denied
- The applicant failed to mitigate security concerns under Guideline F due to a history of multiple bankruptcy filings dismissed for non-payment.
- The applicant's financial issues were recent and numerous, casting doubt on her current reliability and good judgment.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(b)raisedIndebtedness Caused by Frivolous or Irresponsible Spending
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 19(e)raisedConsistent Spending Beyond One's Means
- AG ¶ 20(a)rejectedBehavior Happened Long Ago or InfrequentlyThe applicant's debts were recent and numerous.
- AG ¶ 20(b)rejectedConditions Beyond the Person's ControlThe applicant did not demonstrate that her financial problems were largely beyond her control.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the revised adjudicative guidelines (AG).”
Procedural Posture
- SOR issuedSep 19, 2008
- Answer filedOct 11, 2008
- Hearing heldFeb 2, 2009Hearing was a continuation due to applicant's late arrival.
- Decision dateMar 4, 2009
Cite For
- Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
- Impact of Undisclosed Debts on Security Clearance Eligibility Under Guideline E
- Evaluation of Mitigating Conditions Related to Financial Considerations