Summary
The applicant, a 65-year-old project manager at a defense contractor, faced security clearance denial under Guideline F due to unresolved financial issues, including a dismissed bankruptcy and numerous delinquent accounts totaling approximately $69,822. The judge determined that the applicant failed to demonstrate a good-faith effort to address his financial obligations, leading to concerns about his reliability and trustworthiness.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant failed to mitigate the security concerns regarding financial considerations (1.a). Unpaid federal taxes in the amount of approximately $647 for the years 2015 and 2016 (1.b). Unpaid state taxes in the amounts of approximately $561 (for 2016) and $881 (for 2017) (1.c). Unpaid credit union account with an unpaid balance of about $5,915 that was placed for collection (1.d). Unpaid bank account with an unpaid balance of about $12,107 that was placed for collection (1.e). Unpaid bank account with an unpaid balance of about $13,541 that was placed for collection (1.f). Unpaid bank account with an unpaid balance of about $4,887 that was placed for collection (1.g). Unpaid bank account with an unpaid balance of about $4,460 that was placed for collection (1.h). Unpaid automobile-loan account with an unpaid balance of about $14,643 that was placed for collection (1.i). Unpaid unsecured credit-union account with an unpaid balance of about $3,989 that was placed for collection (1.j). Unpaid bank account with an unpaid balance of about $5,638 that was placed for collection (1.k). Unpaid cellular-telephone account with an unpaid balance of about $1,549 that was placed for collection (1.l). Unpaid cellular-telephone account with an unpaid balance of about $1,004 that was placed for collection (1.m).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(b), AG ¶ 19(c), AG ¶ 19(f). The decision turned on the following: The applicant admitted to financial issues, including a bankruptcy filing that was dismissed due to non-payment; The applicant has 13 delinquent accounts totaling approximately $69,822, which he failed to address or resolve; The applicant did not provide evidence of a plan to resolve his debts or any significant actions taken to mitigate his financial problems.
Why the applicant was denied
- The applicant admitted to financial issues, including a bankruptcy filing that was dismissed due to non-payment.
- The applicant has 13 delinquent accounts totaling approximately $69,822, which he failed to address or resolve.
- The applicant did not provide evidence of a plan to resolve his debts or any significant actions taken to mitigate his financial problems.
Conditions referenced
- AG ¶ 19(a)appliedInability to Satisfy Debts
- AG ¶ 19(b)appliedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 19(f)appliedFailure to Pay Annual Federal, State, or Local Income Tax as Required
Key rule quoted
“Eligibility for access to classified information is denied.”
Procedural posture
- SOR issuedSep 5, 2021
- Answer filedSep 20, 2021Applicant elected to have the case decided on the written record.
- Hearing held—Decision made based on written record.
- Decision dateDec 23, 2021
Cite for
- Failure to Mitigate Financial Concerns Under Guideline F
- Importance of Demonstrating a Good-faith Effort to Resolve Debts
- Impact of Unresolved Financial Issues on Security Clearance Eligibility