Summary
A 43-year-old office administrator with a Bachelor's Degree was denied a security clearance due to significant financial issues under Guideline F (Financial Considerations). The applicant was indebted to at least eleven creditors, totaling approximately $21,000, with debts including credit card balances for household expenses and medical bills. The Statement of Reasons alleged that the applicant was financially overextended, had not paid any outstanding debts, and was at risk of engaging in illegal acts to generate funds.
The applicant attributed her financial difficulties to a divorce and an irresponsible husband who provided no child support, noting a child custody and support hearing was scheduled. She also stated she had retained a credit counseling service to address her credit report and outstanding debts.
However, the judge found insufficient evidence of financial rehabilitation or responsible management of her debts. The applicant had not introduced persuasive evidence to rebut or mitigate the government's case, which had met its initial burden of proving financial irresponsibility. The denial was based on the applicant's significant indebtedness, history of not meeting financial obligations, and failure to demonstrate an ability to manage her financial affairs. The applicant may reapply for a security clearance in the future once her financial indebtedness is addressed.
Why the Applicant Was Denied
- The applicant has significant financial indebtedness totaling approximately $21,000.
- The applicant has a history of not meeting financial obligations and is at risk of engaging in illegal acts to generate funds.
- The applicant has not demonstrated financial rehabilitation or the ability to manage her financial affairs.
Conditions Referenced
- 19.(a)raisedInability or Unwillingness to Satisfy Debts
- 19.(c)raisedA History of Not Meeting Financial Obligations
- 19.(e)raisedConsistent Spending Beyond One’s Means
- 20.(b)appliedConditions Largely Beyond the Person’s ControlThe applicant's financial problems were largely due to a divorce.
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 issuedSep 4, 2008
- Answer filedSep 29, 2008
- Hearing heldDec 10, 2008
- Decision dateFeb 2, 2009
Cite For
- Financial Irresponsibility Under Guideline F
- Impact of Divorce on Financial Obligations
- Insufficient Evidence of Financial Rehabilitation