Summary
A 47-year-old defense contractor employee was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The Statement of Reasons detailed multiple financial issues, including a 1996 IRS lien for $19,000 in taxes and penalties, and various other outstanding debts. These included an automobile loan, landlord damages, medical co-pays (which she claimed were her former husband's responsibility per a divorce decree), and debts to a cable company. Additionally, she had debts for wireless and telephone services incurred by her daughter and son-in-law while residing in her home. One debt of $412 was noted as having been paid.
The applicant disputed several of these allegations, claiming to have paid the automobile loan in full, disputing the landlord's damage claim, and asserting that certain medical and cable debts were either not her responsibility or duplicates. However, the decision found that her financial irresponsibility was not mitigated by circumstances beyond her control.
Despite acknowledging her financial difficulties and having the means to address them, the applicant failed to take effective action to resolve her indebtedness. The ongoing financial difficulties were deemed both recent and not isolated, leading to the denial of her security clearance.
Why the Applicant Was Denied
- Applicant's financial irresponsibility was not mitigated by circumstances beyond her control due to her inaction on debts.
- Despite having the means, the applicant took no effective action to address her indebtedness.
- The applicant's ongoing financial difficulties were both recent and not isolated.
Conditions Referenced
- E2.A6.1.2.1raisedA History of Not Meeting Financial Obligations
- E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts
- E2.A5.1.2.2raisedThe Deliberate Omission, Concealment, or Falsification of Relevant and Material Facts
- E2.A6.1.3.3rejectedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's ControlWhile some circumstances were beyond her control, the applicant's inaction on debts undermined this mitigation.
Key Rule Quoted
“"the clearly consistent standard indicates that security-clearance determinations should err, if they must, on the side of denials."”
Procedural Posture
- SOR issuedJan 6, 2003
- Answer filed—
- Hearing heldApr 3, 2003
- Decision dateJun 25, 2003
Cite For
- Denial of Security Clearance Due to Financial Irresponsibility Under Guideline F
- Failure to Mitigate Financial Issues Despite Personal Circumstances
- Consideration of Unawareness in Financial Disclosures Under Guideline E