Summary
The applicant, a 33-year-old married woman with a Bachelors of Science degree in Chemistry, sought a security clearance for her employment with a defense contractor. The case centered on her financial difficulties, including approximately $190,000 in delinquent debts, which the judge found demonstrated poor judgment and unreliability. The application for clearance was denied due to the applicant's inability to resolve her financial issues and the potential risk to national security.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: A debt owed to a bank for a delinquent credit card account in the amount of $2,413.00 remains owing (1.a). A debt owed to a bank for a delinquent credit card account in the amount of $27,901.00 remains owing (1.b). A debt owed to a bank for a delinquent credit card account in the amount of $8,569.00 remains owing (1.c). A debt owed to a bank for a mortgage account that is more than 120 days past due in the amount of $34,941.00 remains owing (1.d). A debt owed to a bank for the second mortgage on the house she currently lives in is past due in the amount of $90,849.00 (1.e). A debt owed to a bank for a delinquent credit card account in the amount of $15,501.00 remains owing (1.f).
The judge denied the clearance. The government raised disqualifying conditions 19(a), 19(c). The decision turned on the following: The applicant admitted to being financially overextended with approximately $190,000 in delinquent debts; The applicant has made no payments toward the debts listed in the Statement of Reasons (SOR); The applicant's financial problems were exacerbated by a downturn in the economy and poor financial decisions regarding home purchases.
Why the Applicant Was Denied
- The applicant admitted to being financially overextended with approximately $190,000 in delinquent debts.
- The applicant has made no payments toward the debts listed in the Statement of Reasons (SOR).
- The applicant's financial problems were exacerbated by a downturn in the economy and poor financial decisions regarding home purchases.
Conditions Referenced
- 19(a)appliedInability or Unwillingness to Satisfy Debts
- 19(c)appliedA History of Not Meeting Financial Obligations
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 2, 2011
- Answer filedAug 24, 2010
- Hearing heldFeb 18, 2011
- Decision dateMar 14, 2011
Cite For
- Financial Irresponsibility Under Guideline F
- Impact of Unresolved Debts on Security Clearance Eligibility
- The Nexus Between Financial Issues and Reliability in Safeguarding Classified Information