Summary
A 53-year-old defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to a history of unpaid debts and judgments. The Statement of Reasons detailed eleven specific allegations, including three vehicle repossessions resulting in debts of $4,656.26, $14,000.00, and $10,871.00, respectively. Additionally, the applicant owed $2,817.03 and $632.00 to credit card companies, with only $43.00 paid on one of these debts.
The applicant also faced four judgments: $424.98 for emergency room services, $2,828.65 for unpaid rent, $900.83 from a second apartment complex, and $1,081.14 from a third. A disputed debt of $454.55 to a telephone company was also noted. In total, the applicant had seven past due debts and four judgments, amounting to approximately $16,700.
Despite some payments and efforts to contact creditors, the judge found insufficient evidence of a good-faith effort to resolve the majority of the debts. The applicant's promises to pay were largely unfulfilled, and partial payments or intentions to pay did not mitigate the pattern of financial irresponsibility, leading to the denial of the security clearance.
Why the Applicant Was Denied
- The applicant has a long history of financial difficulties, including seven past due debts and four judgments totaling approximately $16,700.
- The applicant failed to demonstrate a good-faith effort to repay her debts, as many promises to pay were not fulfilled.
- The applicant's financial irresponsibility was not mitigated by her partial payments or intentions to pay.
Conditions Referenced
- E2.A6.1.2.1raisedA History of Not Meeting Financial Obligations.
- E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts.
- E2.A6.1.3.6rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts.The applicant's intentions to pay were not supported by actual payments made.
- E2.A6.1.3.1rejectedThe Behavior Was an Isolated Incident.The applicant has multiple debts and a long history of financial issues.
- E2.A6.1.3.4rejectedThe Individual Has Received Financial Counseling.Counseling alone does not indicate that financial problems are under control.
- E2.A6.1.3.5rejectedThe Individual Has a Reasonable Explanation for the Financial Difficulties.While there were factors beyond the applicant's control, sufficient time had passed to establish a repayment plan.
Key Rule Quoted
“A person who seeks access to classified information enters into a fiduciary relationship with the Government predicated upon trust and confidence.”
Procedural Posture
- SOR issuedFeb 25, 2002
- Answer filedMar 6, 2002
- Hearing heldJun 5, 2002
- Decision dateOct 22, 2002
Cite For
- Denial of Security Clearance Due to Financial Irresponsibility Under Guideline F
- Insufficient Evidence of Good-faith Efforts to Repay Debts
- Impact of Multiple Financial Obligations on Security Clearance Eligibility