Summary
A 45-year-old material program manager was denied a security clearance under Guideline F, Financial Considerations, due to significant financial issues. The Statement of Reasons cited the applicant's failure to timely file state and federal tax returns and 17 delinquent accounts totaling approximately $69,341.
Disqualifying conditions under Guideline F were raised, specifically concerning a history of not meeting financial obligations, an inability or unwillingness to satisfy debts, and a pattern of financial irresponsibility. While mitigating conditions were considered, including the debt not being recent and the applicant having initiated a good-faith effort to resolve the debt, these were ultimately not sufficient.
The judge determined that the applicant had a history of financial problems, including over $69,000 in delinquent debts and unfiled tax returns for multiple years. Crucially, the applicant did not demonstrate a good-faith effort to resolve these financial issues, leading to the denial of security clearance.
Why the Applicant Was Denied
- The applicant has a history of financial problems, including over $69,000 in delinquent debts.
- The applicant failed to timely file state and federal tax returns for multiple years.
- The applicant did not demonstrate a good-faith effort to resolve his financial issues.
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 or Failure to Pay Annual Federal, State, or Local Income Tax as Required
- AG ¶ 20(c)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant's financial problems were partly due to a job layoff.
- AG ¶ 20(d)rejectedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant's payments were enforced through wage garnishments, not voluntary efforts.
- AG ¶ 20(g)rejectedThe Individual Has Made Arrangements with the Appropriate Tax Authority to File or Pay the Amount Owed and Is in Compliance with Those ArrangementsThe applicant has not filed required tax returns and presented no documentation of compliance.
Key Rule Quoted
“No one has a right to a security clearance.”
Procedural Posture
- SOR issuedJun 8, 2018
- Answer filedJul 21, 2017Applicant admitted all allegations.
- Hearing heldJun 12, 2019Applicant appeared pro se.
- Decision dateJul 29, 2019
Cite For
- Denial of Security Clearance Due to Significant Financial Issues Under Guideline F
- Insufficient Evidence of Good-faith Efforts to Resolve Financial Problems
- Failure to File Tax Returns as a Disqualifying Factor