Summary
A 52-year-old government contractor and former Army service member was denied a security clearance due to significant financial issues under Guideline F (Financial Considerations). The applicant admitted to over $40,000 in delinquent debts owed to seven creditors, including a $5,969 judgment from November 2016, a $12,964 charged-off credit card, and collection accounts totaling $7,182 and $542. Additional debts included charged-off accounts for $5,930 and $3,929, and a past-due account for $365.
Furthermore, the applicant failed to file federal income tax returns for 2015 and 2016, and did not pay his federal income taxes for 2014. These issues raised disqualifying conditions under Adjudicative Guidelines paragraphs 19(a), 19(c), and 19(f).
While mitigating conditions under paragraphs 20(b), 20(c), 20(d), and 20(g) were considered, the judge concluded that the applicant did not demonstrate a consistent effort to resolve his financial problems. He failed to provide sufficient documentation to establish mitigation, leading to the denial of his security clearance due to the unresolved financial concerns posing a risk to national security.
Why the Applicant Was Denied
- The applicant admitted to over $40,000 in delinquent debts.
- He failed to file federal tax returns for 2015 and 2016.
- The applicant did not provide sufficient documentation to establish mitigation of his financial issues.
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 Tax Returns
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlThe applicant failed to provide evidence that he addressed his delinquent consumer accounts in a reasonable and responsible manner.
- AG ¶ 20(c)rejectedReceiving Financial CounselingThe applicant provided no documentation of financial counseling.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant lacks a track record of consistent payments on his consumer debts.
- AG ¶ 20(g)rejectedArrangements with Tax AuthorityThe applicant failed to show that he resolved his delinquent 2016 Federal tax returns.
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 issuedJun 25, 2018
- Answer filedAug 17, 2018Applicant elected to have the case decided on the written record.
- Hearing held—No hearing; decided on written record.
- Decision dateFeb 5, 2019
Cite For
- Failure to Mitigate Financial Concerns Under Guideline F
- Significant Delinquent Debts as a Disqualifying Factor
- Failure to File Federal Tax Returns as a Security Concern