Summary
A 32-year-old security guard for a defense contractor was denied a security clearance due to concerns under Guideline F (Financial Considerations), Guideline E (Personal Conduct), and Guideline J (Criminal Conduct). The applicant had over $34,000 in debts, including a $23,620 student loan delinquent over 90 days, a $1,750 charged-off credit card, a $2,896 collection account for a computer, and a $3,632 bad debt car loan, all delinquent over 180 days within the last seven years.
Additionally, the applicant failed to accurately list all delinquent debts on her security clearance application. While she claimed to have settled most debts and was on a payment plan, she did not provide documentary evidence to support these claims or to show deferment of student loans.
The judge found that the applicant did not mitigate the financial allegations, specifically regarding the substantial debts and lack of evidence for their resolution. Although allegations related to personal and criminal conduct were mitigated, the unmitigated financial concerns led to the denial of her security clearance.
Why the Applicant Was Denied
- The applicant had over $34,000 in debts, which were either past due, in collection, or classified as bad debt.
- The applicant did not provide documentary evidence to support her claims of settling debts or deferring student loans.
- The applicant's failure to list all delinquent debts on her security clearance application raised concerns under Guideline F.
Conditions Referenced
- E2.A6.1.2.1raisedFinancial Considerations - A History of Not Meeting Financial Obligations
- E2.A6.1.2.3raisedFinancial Considerations - Inability or Unwillingness to Satisfy Debts
- E2.A5.1.2.2raisedPersonal Conduct - Deliberate Omission, Concealment, or Falsification of Relevant and Material Facts
- E2.A10.1.2.2raisedCriminal Conduct - A Single Serious Crime
- E2.A6.1.3.3rejectedFinancial Considerations - the Conditions That Resulted in the Behavior Were Largely Beyond the Person's ControlThe judge found that the applicant's debts were primarily due to her own actions rather than her husband's gambling.
- E2.A6.1.3.6rejectedFinancial Considerations - the Individual Initiated a Good-faith Effort to Pay Overdue Creditors or Otherwise Resolve DebtsThe applicant did not provide sufficient evidence to demonstrate good-faith efforts to resolve her debts.
Key Rule Quoted
“"[N]o one has a 'right' to a security clearance."”
Procedural Posture
- SOR issuedMar 26, 2004
- Answer filedApr 23, 2004Applicant admitted all allegations.
- Hearing held—No hearing specifically requested.
- Decision dateDec 20, 2004
Cite For
- Denial of Security Clearance Due to Significant Financial Irresponsibility Under Guideline F
- Failure to Provide Evidence of Debt Resolution as a Basis for Denial
- Consideration of Personal Conduct and Criminal Conduct Allegations in the Context of Financial Issues.