Summary
A 29-year-old security assistant employed by a defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to multiple unresolved financial issues. The Statement of Reasons (SOR) detailed a 2012 judgment for $3,782 owed to an insurance company, along with several collection accounts. These included two student loan collection accounts for $3,125 and $410, and a past-due student loan amount of $500.
Additionally, the applicant had collection accounts owed to a state government for $1,869, two insurance companies for $482 and $177, and four local governments for $459, $250, $250, and $205. A collection account for a checking account, totaling $383, was also cited. The applicant admitted to all allegations, which raised disqualifying conditions under Adjudicative Guidelines Paragraphs 19(a) and 19(c).
While mitigating condition Paragraph 20(d) was applied, the judge ultimately found that the applicant provided insufficient evidence of a credible plan to resolve her financial problems. Despite some recent efforts, many debts remained unresolved, and the applicant did not provide adequate documentation of financial counseling, leading to the denial of her security clearance.
Why the Applicant Was Denied
- Applicant admitted all allegations in the SOR, including a judgment and multiple collection accounts.
- The applicant provided limited evidence of efforts to resolve her financial issues, with many debts remaining unresolved.
- The judge found that the applicant did not demonstrate a credible plan for debt resolution or provide sufficient documentation of financial counseling.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant made some recent payments towards certain debts, but this was insufficient to mitigate overall concerns.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedJul 16, 2014
- Answer filedJul 31, 2014Applicant elected for a decision on the written record.
- Hearing held—No hearing; decision based on written record.
- Decision dateJun 15, 2015
Cite For
- Failure to Provide Sufficient Evidence of Financial Responsibility Under Guideline F
- Insufficient Documentation of Efforts to Resolve Financial Issues
- Recent Efforts to Address Debts Do Not Establish a Track Record of Financial Responsibility