Summary
The applicant, a 37-year-old defense contractor employee, faced security concerns under Guideline E and Guideline F due to approximately $25,000 in delinquent debts incurred during a period of unemployment while caring for her terminally ill mother. Despite demonstrating responsibility in her personal circumstances, the applicant failed to adequately address her financial issues during her employment, leading to the denial of her security clearance.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: $280. Medical account owed a former employer hospital (1.a). $2,124. Credit card debt that could have been settled for $1,500 but creditor demanded lump sum payment which Applicant could not pay (1.b). $387 Cell phone debt reported at Question 39 of SF 86 (1.c). $6,746 First auto repossession in 1999 and reported at Question 35 of SF 86 (1.d). $6,882 Second auto repossession in 2003 (voluntary) not reported on SF 86 (1.e). $5,036 Home furnishings but Applicant does not know what the debt is for and is investigating source but remains unresolved (1.f). $934 Dental bill from 2002 (1.g). $177 Telephone bill-Paid (1.h). $186 Telephone bill-Paid (1.i). $68 Insurance bill-Paid (1.j). $1,000 Legal services but contingent on outcome of a personal injury lawsuit resulting in a settlement of $75,000 still uncollected (1.k). $2,162 Credit card that creditor would not settle (1.l). $33 Collection account-Paid (1.m).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19 a, AG ¶ 19 c, AG ¶ 16 a. The judge applied mitigating conditions AG ¶ 20 b, AG ¶ 20 d, AG ¶ 20 c. The decision turned on the following: Applicant incurred approximately $25,000 in delinquent debts during a period of unemployment; Applicant did not take sufficient action to resolve debts during her employment of two and a half years; Failure to report all debts on her SF 86 raised concerns about her judgment and honesty.
Why the Applicant Was Denied
- Applicant incurred approximately $25,000 in delinquent debts during a period of unemployment.
- Applicant did not take sufficient action to resolve debts during her employment of two and a half years.
- Failure to report all debts on her SF 86 raised concerns about her judgment and honesty.
Conditions Referenced
- AG ¶ 19 araisedEvidence of Inability or Unwillingness to Satisfy Debts
- AG ¶ 19 craisedHistory of Not Meeting Financial Obligations
- AG ¶ 16 araisedDeliberate Omission, Concealment, or Falsification of Relevant Facts
- AG ¶ 20 bappliedConditions That Resulted in the Behavior Were Largely Beyond the Person's Control
- AG ¶ 20 drejectedInitiated a Good-faith Effort to Repay Overdue CreditorsApplicant's efforts to resolve debts were insufficient and delayed.
- AG ¶ 20 crejectedReceived Counseling for the ProblemApplicant did not engage in credit counseling despite it being beneficial.
Key Rule Quoted
“"[N]o one has a 'right' to a security clearance."”
Procedural Posture
- SOR issuedSep 29, 2006
- Answer filedOct 26, 2006
- Hearing heldJan 25, 2007
- Decision dateMar 28, 2007
Cite For
- Denial of Security Clearance Due to Financial Irresponsibility Under Guideline F
- Failure to Report Debts on SF 86 Indicating Potential Dishonesty Under Guideline E
- Consideration of Personal Circumstances in Financial Issues but Insufficient Action Taken to Mitigate Concerns.