Summary
A 58-year-old defense contractor employee was denied a security clearance under Guideline F (Financial Considerations) due to a history of financial indebtedness. The Statement of Reasons detailed 15 delinquent accounts, including a past-due mortgage and 14 collection or charged-off accounts, totaling approximately $32,763. These included a collection account for $11,040, another for $2,453, and a charged-off account for $1,171, among others.
The applicant had previously filed for Chapter 7 bankruptcy. While she resolved the mortgage delinquency of approximately $5,553, the remaining 14 debts were unresolved and unaddressed. The judge also noted the applicant's recent purchase of a $43,000 sports car, which raised concerns about her financial responsibility.
Ultimately, the judge found insufficient evidence of responsible financial management or resolution of her debts. Disqualifying conditions under Adjudicative Guidelines ¶ 19(a) and ¶ 19(c) were raised, and while mitigating conditions under ¶ 20(b), ¶ 20(c), and ¶ 20(d) were applied, they were not sufficient to overcome the concerns. The security clearance was therefore denied.
Why the Applicant Was Denied
- Applicant has a history of financial indebtedness, including 15 unresolved delinquent accounts totaling $32,763.
- Despite resolving her mortgage delinquency, 14 other debts remain unresolved and unaddressed.
- Applicant's recent purchase of a $43,000 sports car raised questions about her financial responsibility.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlApplicant accepted some responsibility for her financial decisions and did not demonstrate that her financial problems were entirely beyond her control.
- AG ¶ 20(c)rejectedReceived or Receiving Counseling for the ProblemApplicant failed to produce documentation showing she received counseling for her financial problems.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsApplicant has not demonstrated a good-faith effort to address her numerous unresolved debts.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedApr 27, 2015
- Answer filedMay 24, 2015
- Hearing heldAug 18, 2015
- Decision dateSep 17, 2015
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Impact of Financial Irresponsibility on Security Clearance Eligibility
- Consideration of the Whole-person Concept in Financial Cases