Summary
A 58-year-old former Air Force officer was denied a security clearance under Guideline F (Financial Considerations) due to a history of unresolved financial issues and a criminal conviction for fraud. The Statement of Reasons alleged the applicant failed to satisfy debts and meet financial obligations, demonstrating poor self-control and judgment, with delinquent debts dating back to 2012. Specific concerns included a past-due and charged-off second mortgage on a rental property. While the applicant claimed to have resolved a mortgage foreclosure and disputed other government claims, providing some evidence of payments, the judge found this insufficient.
The denial was based on several factors. The applicant failed to timely file federal and state income tax returns for multiple years, raising concerns about compliance with legal obligations. Furthermore, a criminal conviction for fraud and larceny indicated a pattern of deceptive behavior.
Ultimately, the applicant did not provide sufficient evidence to demonstrate that the financial issues were resolved or under control, leading to the denial of the security clearance.
Why the applicant was denied
- The applicant failed to timely file federal and state income tax returns for multiple years, raising concerns about compliance with legal obligations.
- The applicant's criminal conviction for fraud and larceny indicated a pattern of deceptive behavior.
- The applicant did not provide sufficient evidence to demonstrate that financial issues were resolved or under control.
Conditions referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(d)raisedDeceptive or Illegal Financial Practices
- AG ¶ 19(g)raisedFailure to File or Fraudulently Filing Annual Federal, State, or Local Income Tax Returns
- AG ¶ 20(g)appliedThe Individual Has Made Arrangements with the Appropriate Tax Authority to File or Pay the Amount Owed and Is in Compliance with Those ArrangementsThe applicant filed late tax returns after receiving the SOR.
- AG ¶ 20(d)appliedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant resolved one mortgage foreclosure.
- AG ¶ 20(b)rejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant did not act responsibly in addressing his financial issues.
Key rule quoted
“Failure to file tax returns suggests that an applicant has a problem with complying with well-established government rules and systems.”
Procedural posture
- SOR issuedFeb 2, 2018
- Answer filedMar 26, 2018
- Hearing held—Decided on the written record.
- Decision dateDec 20, 2018
Cite for
- Failure to Mitigate Financial Concerns Under Guideline F
- Impact of Criminal Convictions on Security Clearance Eligibility
- Importance of Timely Filing Tax Returns for Security Clearance Considerations