Summary
A 48-year-old test engineer and retired Navy chief warrant officer was denied a security clearance under Guideline F (Financial Considerations) due to significant unresolved delinquent debts and past failures to file tax returns. The Statement of Reasons detailed approximately $66,603 in outstanding debts, including charged-off credit card and vehicle loans, multiple collection accounts for telecommunications and utility bills, an unsecured personal loan, and a child support arrearage of $19,848. Additionally, the applicant failed to timely file federal and state income tax returns for 2015, 2016, and 2017.
While the applicant mitigated concerns related to the tax filings, the judge found that the substantial delinquent debts remained a significant issue. The decision highlighted that the applicant did not take meaningful steps to resolve these debts until his security clearance was at risk.
Ultimately, the judge determined that the unresolved financial obligations, totaling approximately $66,603, were sufficient to deny eligibility for access to classified information.
Why the Applicant Was Denied
- The applicant has unresolved delinquent debts totaling approximately $66,603.
- The applicant did not take significant action to resolve his debts until his security clearance was jeopardized.
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 Individual Has Received or Is Receiving Financial Counseling for the Problem From a Legitimate and Credible SourceThe applicant has received financial counseling and enrolled in a debt-management plan.
- AG ¶ 20(d)appliedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant has made payments on some debts and is enrolled in a debt-management plan.
- AG ¶ 20(g)appliedThe 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 filed all overdue tax returns and has no federal or state tax debts.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedMar 14, 2019
- Answer filedMay 15, 2019
- Hearing heldSep 26, 2019
- Decision dateNov 1, 2019
Cite For
- Denial of Security Clearance Due to Unresolved Delinquent Debts Under Guideline F
- Mitigating Conditions Related to Financial Counseling and Debt Repayment Efforts
- Consideration of the Whole-person Concept in Security Clearance Determinations