Summary
The applicant, a 52-year-old retired military veteran, faced security clearance denial under Guideline F due to unresolved financial issues, including multiple delinquent debts and failure to timely file tax returns. Despite some efforts to address his tax obligations, the judge found insufficient evidence to mitigate the financial concerns, leading to doubts about the applicant's reliability and trustworthiness.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Failure to timely file federal and state income tax returns for 2016 and 2018 (1.a). Failure to timely file federal and state income tax returns for 2016 and 2018 (1.b). Federal tax debt for $7,266 for tax year 2016 (1.c). Charged-off auto loan for $10,988 (1.d). Charged-off auto loan for $3,634 (1.e). Debt in collection for cellular phone services for $2,007, resolved in 2020 (1.f). Charged-off account with a jewelry store for $1,702, delinquent since 2018 (1.g). Debt in collection for the Department of Veterans Affairs for $898, delinquent since 2012 (1.h). Debt in collection for cellular phone services for $1,039, delinquent since 2017 (1.i).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c), AG ¶ 19(f). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(d), AG ¶ 20(g). The decision turned on the following: The applicant failed to provide sufficient information to mitigate financial concerns arising from charged-off and delinquent debts; The applicant had multiple delinquent debts totaling approximately $27,534, including a federal tax debt and charged-off loans; The applicant did not demonstrate a good-faith effort to resolve several debts, raising doubts about his reliability and trustworthiness.
Why the Applicant Was Denied
- The applicant failed to provide sufficient information to mitigate financial concerns arising from charged-off and delinquent debts.
- The applicant had multiple delinquent debts totaling approximately $27,534, including a federal tax debt and charged-off loans.
- The applicant did not demonstrate a good-faith effort to resolve several debts, raising doubts about his reliability and trustworthiness.
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
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to RecurThe applicant's financial issues are ongoing and recent.
- AG ¶ 20(b)rejectedConditions That Resulted in Financial Problems Were Largely Beyond the Person's ControlInsufficient evidence to show that debts occurred under circumstances beyond the applicant's control.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue Creditors or Resolve DebtsThe applicant did not provide sufficient documentation to show a good-faith effort to resolve several debts.
- AG ¶ 20(g)appliedArrangements with Tax Authority to File or Pay Amounts OwedThe applicant has been making monthly payments on his 2016 tax debt.
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 issuedJan 3, 2020
- Answer filedFeb 13, 2020
- Hearing heldJun 6, 2022via video teleconference
- Decision dateAug 29, 2022
Cite For
- Insufficient Mitigation of Financial Concerns Under Guideline F
- Ongoing Financial Obligations Impacting Security Clearance Eligibility
- Failure to Demonstrate Good-faith Efforts in Resolving Debts