Summary
A 38-year-old male applicant was denied security clearance under Guideline F (Financial Considerations) due to a history of financial difficulties. The Statement of Reasons (SOR) alleged several unpaid debts, including student loans, a past-due credit card bill of $15,958, and other past-due debts of $2,451 and $284 owed to a cable company. The applicant admitted to owing multiple student loans and acknowledged partial responsibility for the credit card and other past-due debts. He denied owing $115 to a medical creditor.
Additionally, the applicant admitted to not filing Federal tax returns in a timely fashion for the 2013, 2015, and 2016 tax years. Disqualifying conditions under AG ¶ 19(a), (b), (c), and (f) were raised. While mitigating conditions under AG ¶ 20(a), (b), (c), (d), (e), and (g) were applied, they were not sufficient to overcome the concerns.
The denial was based on the applicant's failure to timely file Federal and state tax returns for multiple years, substantial unresolved past-due debts including student loans, and insufficient efforts to address these financial issues, with only one payment made towards a debt relief program.
Why the Applicant Was Denied
- The applicant failed to timely file Federal and state tax returns for multiple years.
- The applicant has substantial past-due debts, including student loans, and many remain unresolved.
- The applicant's efforts to address his debts were deemed insufficient, with only one payment made towards a debt relief program.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(b)raisedUnwillingness to Satisfy Debts Regardless of Ability to Do So
- 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 so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- AG ¶ 20(c)rejectedReceived Financial Counseling From a Legitimate Source
- AG ¶ 20(d)rejectedInitiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors
- AG ¶ 20(e)appliedReasonable Basis to Dispute the Legitimacy of the Past-due DebtTwo debts were successfully disputed.
- AG ¶ 20(g)appliedMade Arrangements with the Appropriate Tax AuthorityThe applicant filed all past-due tax returns and does not owe back taxes.
Key Rule Quoted
“Failure to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness, and ability to protect classified or sensitive information.”
Procedural Posture
- SOR issuedMar 5, 2018
- Answer filedApr 5, 2018
- Hearing heldAug 20, 2018Hearing convened as scheduled.
- Decision dateJun 21, 2019
Cite For
- Denial of Security Clearance Based on Unresolved Financial Obligations
- Impact of Financial Distress on Security Clearance Eligibility
- Insufficient Evidence of Good-faith Efforts to Resolve Debts