Summary
A naturalized U.S. citizen, originally from Guyana, was denied a security clearance under Guideline F (Financial Considerations) due to significant unresolved financial issues. The Statement of Reasons detailed multiple delinquent accounts and tax liens.
Specifically, the applicant had a $28,320 past-due mortgage and an $83,301 charged-off home equity line of credit on a property in state B. Two mortgage accounts were foreclosed, one in approximately October 2016 and another in approximately October 2017. Additional debts included a $21,761 charged-off account, a $3,195 charged-off account, $4,161 across seven delinquent medical accounts, and a $450 charged-off department-store credit card. Furthermore, the applicant faced a $5,303 state tax lien from August 2018 and a $25,789 federal tax lien from September 2018.
Despite some efforts to address his debts, the applicant was unable to pay his federal and state taxes and did not provide evidence of successfully disputing or paying any remaining delinquent debts. The applicant also had not received credit counseling and acknowledged financial mismanagement, leading to the denial of eligibility for access to classified information.
Why the Applicant Was Denied
- The applicant was unable to pay his debts, including federal and state taxes.
- The applicant did not provide evidence of successfully disputing or paying any of his remaining delinquent debts.
- The applicant has not received credit counseling and acknowledged financial mismanagement.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 19(f)raisedFailure to File or Fraudulently Filing Annual Federal, State, or Local Income Tax Returns or Failure to Pay Annual Federal, State, or Local Income Tax as Required
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person’s ControlWhile conditions beyond the applicant's control contributed to his financial problems, he did not act responsibly under the circumstances.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant did not provide evidence of a good-faith effort to resolve his remaining debts.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedMar 13, 2018
- Answer filedJun 4, 2018
- Hearing heldNov 29, 2018Applicant requested a continuance prior to the hearing.
- Decision dateMay 8, 2019
Cite For
- Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
- Failure to Demonstrate Sufficient Mitigation of Financial Concerns
- Impact of Financial Mismanagement on Security Clearance Eligibility