Summary
A 52-year-old defense contractor employee was denied a security clearance due to financial considerations under Guideline F. The applicant had nine delinquent debts, totaling approximately $130,894, primarily originating from a failed business venture. These debts included a charged-off second mortgage of $86,584, several other charged-off accounts ranging from $1,685 to $17,637, collection accounts from $182 to $6,185, and an outstanding judgment for $6,838. Most of these delinquencies dated back to 2008.
Despite her long tenure and positive performance evaluations, the applicant failed to demonstrate a good-faith effort to resolve her financial issues over a six-year period. She also did not establish a plan to address her financial problems.
The decision cited Disqualifying Conditions AG ¶ 19(a) and AG ¶ 19(c). While Mitigating Conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), and AG ¶ 20(d) were considered, they were not sufficient to overcome the concerns regarding the applicant's failure to address her significant and long-standing financial delinquencies. Consequently, the security clearance was denied.
Why the Applicant Was Denied
- The applicant has nine delinquent debts totaling approximately $130,894, with most debts delinquent since 2008.
- The applicant did not demonstrate a good-faith effort to resolve her financial delinquencies over a period of six years.
- The applicant failed to establish a plan to address her financial problems.
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 so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurThe applicant's financial problems are ongoing.
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlAlthough the financial problems were due to a business downturn, the applicant did not act responsibly.
- AG ¶ 20(c)rejectedReceived or Is Receiving Counseling for the ProblemThe applicant's financial problems are unlikely to be resolved in the near future.
- AG ¶ 20(d)rejectedInitiated a Good-faith Effort to Repay Overdue CreditorsThe applicant has not made a good-faith effort to resolve her delinquent debts.
Key Rule Quoted
“A person who seeks access to sensitive information enters into a fiduciary relationship with the Government predicated upon trust and confidence.”
Procedural Posture
- SOR issuedOct 23, 2014
- Answer filedNov 20, 2014Applicant requested decision on the administrative record.
- Hearing heldApr 30, 2015
- Decision dateMay 22, 2015
Cite For
- Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
- Importance of Demonstrating a Plan to Resolve Financial Delinquencies
- Impact of Ongoing Financial Problems on Trustworthiness Evaluations Under AG Guidelines