Summary
A 54-year-old defense contractor with a Bachelor's degree in Information Technology Management was denied a security clearance under Guideline F, Financial Considerations, due to significant and ongoing financial difficulties. The Statement of Reasons detailed $113,786 in delinquent debts, including approximately $32,572 in back Federal taxes, $18,349 in delinquent medical debt, and $26,572 for delinquent student loans owed to the U.S. Department of Education, along with an additional $1,345 in other delinquent student loans.
Further debts included $20,390 for a repossessed automobile, $2,695 in state tax debt, and a $5,280 judgment from 2004. Smaller outstanding obligations comprised a $318 telephone bill, a $542 creditor bill, $522 for unreturned cable equipment, $49 in library debt, and a $962 judgment for an overpayment to her state Employment Development Department.
Despite some efforts to address her financial situation, the judge found that over $60,000 of the applicant's delinquent debts remained unresolved. The decision concluded that there was insufficient evidence of responsible financial management or a coherent plan to resolve her outstanding obligations, leading to the denial of her security clearance.
Why the Applicant Was Denied
- The applicant has $113,786 in delinquent debts, with over $60,000 remaining unresolved.
- Insufficient evidence was provided to demonstrate responsible financial management or a coherent plan to address debts.
- The applicant's financial difficulties were ongoing and not adequately mitigated by her actions.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant did not demonstrate a coherent plan for debt repayment.
- AG ¶ 20(e)appliedReasonable Basis to Dispute Legitimacy of DebtsThe applicant successfully disputed some debts.
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 issuedDec 22, 2010
- Answer filedApr 1, 2011
- Hearing heldFeb 10, 2012
- Decision dateMay 31, 2012
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Insufficient Evidence of Responsible Financial Management
- Impact of Financial Difficulties on Security Clearance Eligibility