Summary
A 32-year-old financial advisor employed by a defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to significant delinquent debts exceeding $50,000. The Statement of Reasons (SOR) alleged 36 delinquent debts, of which the applicant admitted to 19 totaling over $37,000. She denied 17 debts totaling nearly $13,000, some due to not recognizing creditors or claiming insurance coverage without corroborating co-pay and deductible payments.
The applicant attributed her financial difficulties to a substantial decline in income during maternity leave in 2001 and a lack of child support. While she claimed to be addressing some debts and provided uncorroborated assertions of payments, documented efforts were minimal. These included four payments totaling almost $1,700 on educational accounts, with over $1,300 paid via IRS tax refund offsets in 2008. She also documented settlement offers from creditors in spring 2009 but did not provide proof of payments on these offers.
The judge found the applicant's financial management inadequate and her attempts to mitigate the situation insufficient. Despite receiving the SOR in January 2009 and beginning to send letters to creditors, she had not established repayment plans or made payments on these debts. Her history of financial difficulties dated to at least 2001, with payments described as sporadic and not timely or in good faith. Consequently, granting clearance was deemed inconsistent with national interest.
Why the Applicant Was Denied
- Applicant has a history of financial difficulties dating back to at least 2001.
- She admitted to 19 debts totaling over $37,000, demonstrating poor financial practices.
- Her efforts to address her debts were sporadic, ineffectual, and largely undocumented.
Conditions Referenced
- F.1.araisedInability or Unwillingness to Satisfy Debts
- F.1.craisedA History of Not Meeting Financial Obligations
- F.2.arejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- F.2.brejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- F.2.crejectedThe Person Has Received or Is Receiving Counseling for the Problem and There Are Clear Indications That the Problem Is Being Resolved or Is Under Control
- F.2.drejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“The government has a compelling interest in ensuring each Applicant possesses the requisite judgement, reliability, and trustworthiness of those who must protect national interests as their own.”
Procedural Posture
- SOR issuedJan 15, 2009
- Answer filedFeb 17, 2009
- Hearing heldMay 19, 2009
- Decision dateJul 8, 2009
Cite For
- Denial of Security Clearance Due to Significant Financial Issues Under Guideline F
- Insufficient Evidence of Financial Management and Mitigation Efforts
- Impact of Personal Circumstances on Financial Obligations and Security Clearance Decisions