Summary
A 27-year-old senior logistics specialist and U.S. Army Reserve member was denied a security clearance due to significant financial issues and related personal conduct concerns. The Statement of Reasons (SOR) detailed approximately $18,000 in delinquent debts, including unpaid telephone, gas and electric, and cell phone bills, as well as two catalog debts, a TV cable bill, a military clothing charge account, and a bank credit card bill. Additionally, the applicant had an unpaid auto repossession and a bad check. A bank auto loan, identified as the spouse's debt, was also noted.
The denial was based on Guideline F (Financial Considerations) and Guideline E (Personal Conduct). Disqualifying conditions under Guideline E were raised, while several mitigating conditions were considered but ultimately not applied. The judge found that the applicant's history of delinquent debts, totaling about $18,000, remained largely unresolved prior to the hearing.
The applicant did not demonstrate a good-faith effort to resolve these debts until after receiving the SOR. The financial problems were deemed ongoing and not isolated incidents, failing to meet the criteria for mitigating conditions. Consequently, the applicant's security clearance was denied.
Why the Applicant Was Denied
- The applicant had a history of delinquent debts totaling about $18,000, which were not resolved prior to the hearing.
- The applicant did not demonstrate a good-faith effort to resolve her debts until after receiving the SOR.
- The applicant's financial problems were ongoing and not isolated incidents, failing to meet mitigating conditions.
Conditions Referenced
- E2.A6.1.2.1raisedDC 1: History of Not Meeting Financial Obligations
- E2.A6.1.2.3raisedDC 3: Inability or Unwillingness to Satisfy Debts
- E2.A6.1.3.1rejectedMC 1: Financial Problems Not RecentThe applicant's financial problems have continued to the present.
- E2.A6.1.3.2rejectedMC 2: Isolated IncidentThe applicant has numerous delinquent debts spanning several years.
- E2.A6.1.3.4rejectedMC 3: Conditions Beyond the Person's ControlDebts were incurred before the applicant's recall to active duty.
- E2.A6.1.3.6rejectedMC 6: Good-faith Effort to Repay or Resolve DebtsThe applicant did not resolve debts until after receiving the SOR.
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 security clearance."”
Procedural Posture
- SOR issuedOct 10, 2003
- Answer filedNov 10, 2003
- Hearing heldAug 19, 2005
- Decision dateSep 15, 2005
Cite For
- Denial Based on Ongoing Financial Irresponsibility Under Guideline F
- Failure to Mitigate Financial Concerns Despite Some Payments Made
- Consideration of Personal Conduct in Relation to Financial Issues Under Guideline E