Summary
A 54-year-old defense contractor and former Air National Guard member was denied a security clearance under Guideline F, Financial Considerations, due to unresolved financial issues. The Statement of Reasons detailed that the applicant filed for Chapter 7 bankruptcy in April 2019, owed delinquent federal taxes for 2015 ($1,713) and 2016 ($5,019), and had accumulated 25 delinquent debts totaling approximately $52,791.
Disqualifying conditions under Guideline F were raised, including AG ¶ 19(a), AG ¶ 19(b), AG ¶ 19(c), and AG ¶ 19(f). While mitigating conditions AG ¶ 20(b) and AG ¶ 20(c) were applied, they were deemed insufficient.
The denial was based on the applicant's failure to demonstrate sufficient mitigation of these recent and unresolved financial issues. Concerns were raised regarding his reliability and trustworthiness, and he did not provide adequate documentation to support claims of resolving tax debts or making payments. Consequently, granting access to classified information was determined not to be in the national interest.
Why the Applicant Was Denied
- The applicant failed to demonstrate sufficient mitigation of financial issues, including a Chapter 7 bankruptcy and multiple delinquent debts totaling approximately $52,791.
- The applicant's financial troubles were recent and unresolved, raising concerns about his reliability and trustworthiness.
- The applicant did not provide adequate documentation to support claims of resolving tax debts or making payments.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(b)raisedUnwillingness to Satisfy Debts Regardless of the 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 or Failure to Pay Annual Federal, State, or Local Income Tax as Required
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlThe applicant's decision to take a lower-paying job was voluntary and not beyond his control.
- AG ¶ 20(c)appliedThe Individual Has Received or Is Receiving Financial CounselingThe applicant completed required bankruptcy financial counseling, but it is too soon to determine if financial problems are under control.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedMay 15, 2019
- Answer filedJun 25, 2019Applicant elected to have the case decided on the written record.
- Hearing held—Decision made based on written record.
- Decision dateDec 11, 2019
Cite For
- Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
- Insufficient Mitigation of Financial Concerns Despite Bankruptcy
- Consideration of the Whole-person Concept in Security Clearance Decisions