Summary
A 45-year-old male applicant with a bachelor's degree and military training was denied a security clearance under Guideline F (Financial Considerations) due to significant financial issues. The Statement of Reasons detailed his failure to file federal income tax returns for 2016 and 2017. Additionally, he incurred over $40,000 in delinquent debts across multiple accounts.
Specific allegations included a past-due debt of $1,080 to a jewelry store, with a total balance of $3,026. Several other delinquent debts owed to credit unions were placed for collection, totaling approximately $5,272, $10,474, $7,787, $10,598, and $1,503, respectively. These issues raised disqualifying conditions related to financial irresponsibility.
While some mitigating conditions were considered, the applicant failed to provide evidence of efforts to resolve his admitted delinquent debts. The judge concluded that the applicant did not demonstrate the good judgment, reliability, or trustworthiness required for access to classified information, leading to the denial of his security clearance.
Why the Applicant Was Denied
- The applicant failed to file Federal income tax returns for 2016 and 2017.
- The applicant admitted to over $40,000 in delinquent debts without providing evidence of efforts to resolve them.
- The applicant did not demonstrate good judgment, reliability, or trustworthiness necessary for access to classified information.
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(b)rejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlWhile the applicant's military discharge was sudden, it did not mitigate the ongoing financial irresponsibility.
- AG ¶ 20(c)rejectedThe Individual Has Received or Is Receiving Financial CounselingThe applicant had not received any financial counseling.
- AG ¶ 20(d)rejectedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant only stated intentions to pay debts by 2024 without evidence of good faith efforts.
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 6, 2020
- Answer filedMar 17, 2020Applicant requested a decision on the written record.
- Hearing held—Decision made based on written record.
- Decision dateAug 6, 2020
Cite For
- Denial of Security Clearance Due to Financial Irresponsibility Under Guideline F
- Failure to File Tax Returns as a Disqualifying Condition
- Lack of Evidence for Mitigating Financial Conditions