Summary
A 32-year-old firearms instructor was denied a security clearance under Guideline F (Financial Considerations) due to significant financial issues. The applicant was delinquent on approximately $40,000 in debts, defaulted on a mortgage that led to a 2013 foreclosure, and failed to file federal and state income tax returns for 2015 and 2016. Additionally, the applicant owed approximately $3,000 in taxes. While the applicant claimed to have paid two smaller debts in early 2017, no payment records were submitted, though these debts no longer appeared on his credit report.
The applicant admitted to the allegations and offered personal circumstances as explanations for his financial difficulties. However, the judge found these explanations insufficient to mitigate the security concerns. Disqualifying conditions cited included a history of not meeting financial obligations, an inability to satisfy debts, and a pattern of financial irresponsibility.
Despite the application of several mitigating conditions, the judge determined that the applicant failed to demonstrate sufficient financial responsibility and control. The applicant did not seek financial counseling or take adequate steps to resolve his delinquent debts and tax issues, leading to the denial of the security clearance.
Why the Applicant Was Denied
- The applicant failed to demonstrate financial responsibility and control over his debts and tax obligations.
- The applicant did not seek financial counseling or take adequate steps to resolve his delinquent debts and tax issues.
- The applicant's explanations for his financial difficulties did not mitigate the concerns raised under Guideline F.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(f)raisedFailure to File or Fraudulently Filing Annual Federal, State, or Local Income Tax Returns
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to RecurThe applicant's financial issues were ongoing and not resolved.
- AG ¶ 20(b)rejectedConditions That Resulted in Financial Problems Were Largely Beyond the Person's ControlThe applicant's financial issues were known and not addressed adequately.
- AG ¶ 20(c)rejectedReceived or Is Receiving Financial CounselingThe applicant did not seek financial counseling.
- AG ¶ 20(d)rejectedInitiated and Is Adhering to a Good-faith Effort to Repay Overdue CreditorsThe applicant did not demonstrate a good-faith effort to resolve debts.
- AG ¶ 20(g)rejectedMade Arrangements with the Appropriate Tax Authority to File or Pay the Amount OwedThe applicant did not take action to resolve tax obligations.
Key Rule Quoted
“Failure to comply with Federal tax laws suggests that an applicant has a problem with abiding by well-established government rules and regulations.”
Procedural Posture
- SOR issuedFeb 2, 2018
- Answer filed—
- Hearing heldNov 19, 2018Hearing convened as scheduled.
- Decision dateFeb 27, 2019
Cite For
- Denial of Security Clearance Due to Financial Irresponsibility Under Guideline F
- Insufficient Evidence of Financial Responsibility and Control
- Failure to File Tax Returns as a Disqualifying Factor for Security Clearance