Summary
A 36-year-old federal contractor was denied a security clearance under Guideline F, Financial Considerations, due to significant financial issues. The Statement of Reasons detailed multiple delinquent accounts, including a charged-off account for $26,733, several accounts 120 days or more past due totaling $1,444 each, a collection account for $1,883, and two delinquent accounts for $604 and $603, both sharing the same account number. These allegations raised disqualifying conditions under Adjudicative Guidelines Paragraphs 19(a) and 19(c).
The applicant had a total of 37 delinquent debts amounting to $36,597, along with a history of issuing bad checks. While mitigating conditions under Adjudicative Guidelines Paragraphs 20(a), 20(b), 20(c), and 20(d) were considered, they were not sufficient to overcome the concerns.
The judge determined that the applicant failed to demonstrate responsible management of her financial situation and did not provide adequate evidence of efforts to resolve her debts. This led to a finding that the ongoing financial problems raised doubts about her reliability and trustworthiness, resulting in the denial of her security clearance.
Why the Applicant Was Denied
- Applicant had 37 delinquent debts totaling $36,597.
- Applicant failed to provide evidence of responsible financial management or debt resolution efforts.
- The judge found ongoing financial problems raised doubts about the applicant's reliability and trustworthiness.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Unlikely to RecurApplicant's financial problems are ongoing and significant.
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlInsufficient evidence to show responsible actions taken to address financial issues.
- AG ¶ 20(c)rejectedReceived Counseling for the ProblemNo evidence of financial counseling provided.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay CreditorsInsufficient evidence of a meaningful track record of payments or debt reduction.
Key Rule Quoted
“An applicant has the ultimate burden of demonstrating that it is clearly consistent with the national interest to grant or continue [his or her] security clearance.”
Procedural Posture
- SOR issuedMay 9, 2014
- Answer filedMay 27, 2014Applicant elected for a written record decision.
- Hearing held—No hearing; case decided on written record.
- Decision dateOct 8, 2014
Cite For
- Denial of Security Clearance Due to Significant Financial Issues Under Guideline F
- Failure to Demonstrate Responsible Financial Management
- Insufficient Evidence of Debt Resolution Efforts Leading to Security Concerns