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Summary

The applicant, a 49-year-old former administrative assistant, faced security clearance denial under Guideline E (Personal Conduct) and Guideline F (Financial Considerations) due to unresolved debts totaling approximately $10,000 and failure to disclose required information on her security form. Despite sympathetic circumstances, including an 18-month unemployment period, the applicant did not demonstrate a good-faith effort to resolve her financial issues or reform her financial practices, leading to the denial of her clearance.

Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant failed to disclose required information on her security form (2.a). Applicant failed to disclose required information on her security form (2.b). Applicant failed to disclose required information on her security form (2.c). Applicant owes $210 to a collection agency for telephone expenses, but has not made any recent payments (1.a). Applicant explained her debt to Creditor #2 for $416 has been paid as her current telephone is "still on" and her bill is current (1.b). Applicant admitted her debt to Creditor #3 for $40 for medical expenses (1.c). Applicant explained her debt to Creditor #4 for $100 to a collection bureau for a medical debt should have been covered by charity care (1.d). Applicant explained she had paid her debt to Creditor #5 for $37 for medical expenses (1.e). Applicant denied a past debt to Creditor #6 for $167 (1.f). Applicant denied a debt to Creditor #7, a bank, for $177 (1.g). Applicant admits her debt to Creditor #8, a bank, for $965 for credit card debt which will be included in the request for bankruptcy discharge (1.h). Applicant admits her debt to Creditor #9, a credit card issued by a bank, for $778 for credit card debt which will be included in the request for bankruptcy discharge (1.i). Applicant admits her debt to Creditor #10, a bank, for $1,143 for credit card debt which will be included in the request for bankruptcy discharge (1.j). Applicant admits her debt to Creditor #11, a bank, for $434 which is a credit card she got after she was employed (1.k). Applicant admits her debt to Creditor #12, a bank, for $613 for credit card debt which will be included in the request for bankruptcy discharge (1.l). Applicant denied her debt to Creditor #13, a bank, for $335 (1.m). Applicant made payment arrangements for $20 per month for the debt of $4,971 which was the amount remaining following the repossession of her jeep. This debt was included in the bankruptcy petition (1.n). A judgment was entered against Applicant for $154 in February 2000. She sent a payment to the courts who returned the payment to her as they could not find the judgment; afterwards the owner of the store died. She does not know how to resolve this debt (1.o).

The judge denied the clearance. The government raised disqualifying conditions F.3, E.2.A5.1.2.2. The judge applied mitigating conditions F.3, E.2.A6.1.3. The decision turned on the following: The applicant failed to develop a plan to resolve her debts in a timely manner after regaining employment; The applicant's bankruptcy petition was pending, and none of her debts had been discharged at the time of the decision; The applicant did not disclose required information on her security clearance application, including multiple financial delinquencies and DWI arrests.

Why the applicant was denied

• The applicant failed to develop a plan to resolve her debts in a timely manner after regaining employment.
• The applicant's bankruptcy petition was pending, and none of her debts had been discharged at the time of the decision.
• The applicant did not disclose required information on her security clearance application, including multiple financial delinquencies and DWI arrests.

Conditions referenced

Key rule quoted

“The responsibility for producing evidence initially falls on the Government to demonstrate that it is not clearly consistent with the national interest to grant or continue Applicant's access to classified information.”

Procedural posture

• SOR issuedAug 5, 2004
• Answer filedSep 1, 2004
• Hearing heldMar 28, 2005Applicant was given an extension until April 4, 2005, to submit additional evidence.
• Decision dateOct 6, 2005

Cite for

• Denial of Clearance Due to Unresolved Financial Issues Under Guideline F
• Failure to Disclose Relevant Information Under Guideline E
• Insufficient Evidence of Good-faith Efforts to Resolve Debts