Summary
A 60-year-old defense contractor employee was denied a security clearance due to significant financial concerns under Guideline F. The Statement of Reasons detailed numerous past-due debts and delinquent federal taxes.
Specifically, the applicant admitted to multiple past-due credit card debts, including one for approximately $53,000 related to a divorce, another for about $15,000, and additional debts of roughly $13,000, $8,000, and $598. There were also two judgments in favor of Creditor E for $4,872 and $2,416 each. Other admitted debts included a past-due bank debt of about $490, medical debts of approximately $686 and $40, and a charged-off credit card debt of about $700. Furthermore, the applicant admitted to owing delinquent federal income taxes for tax years 2017, 2010, and 2018, totaling approximately $22,000, $3,900, and $11,000, respectively.
Despite some good-faith efforts to address certain debts, the applicant failed to resolve multiple past-due debts exceeding $60,000, including the $22,000 in delinquent federal taxes. The applicant also admitted to having the ability to address some debts but did not take action, leading to doubts about his reliability and trustworthiness. Consequently, the security clearance was denied.
Why the Applicant Prevailed
- The applicant demonstrated good-faith efforts to address some debts, specifically a $53,000 credit card debt and two judgments.
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(a)rejectedBehavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- AG ¶ 20(d)appliedIndividual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors
Key Rule Quoted
“Any doubt concerning personnel being considered for national security eligibility will be resolved in favor of the national security.”
Procedural Posture
- SOR issuedOct 7, 2020
- Answer filedOct 20, 2020
- Hearing heldFeb 23, 2021
- Decision dateApr 13, 2021
Cite For
- Financial Responsibility Under Guideline F
- Impact of Unresolved Debts on Security Clearance Eligibility
- Good-faith Efforts in Addressing Financial Obligations