Summary
A 39-year-old military veteran was denied a security clearance under Guideline F, Financial Considerations, due to significant unresolved financial issues. The Statement of Reasons detailed his failure to timely file federal and state income tax returns for 2018 and 2019. Additionally, he had 14 delinquent student loans exceeding $92,000, alongside over $30,000 in consumer and medical debts. The applicant also failed to disclose any delinquent or charged-off accounts, or accounts in collection, on his security clearance application.
Disqualifying conditions under Guideline F were raised, while several mitigating conditions were considered. However, the denial was ultimately based on the applicant's failure to address his financial problems. He made no effort to contact creditors or resolve his debts, indicating a lack of responsibility.
Furthermore, the applicant's testimony was found to lack credibility and candor, which raised additional concerns regarding his reliability and trustworthiness. These factors collectively led to the denial of his security clearance.
Why the Applicant Was Denied
- The applicant failed to timely file his 2018 and 2019 federal and state income tax returns.
- He has 14 delinquent student loans totaling over $92,000 and more than $30,000 in consumer and medical debts.
- The applicant has not made any effort to contact creditors or resolve his debts, demonstrating a lack of responsibility.
- His testimony lacked credibility and candor, raising further concerns about his reliability.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(b)raisedUnwillingness to Satisfy Debts Regardless of 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
- AG ¶ 20(g)appliedThe Individual Has Made Arrangements with the Appropriate Tax Authority to File or Pay the Amount Owed and Is in Compliance with Those ArrangementsThe applicant filed his delinquent tax returns and does not owe any delinquent taxes.
- AG ¶ 20(b)rejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant has not acted responsibly to address his debts.
- AG ¶ 20(c)rejectedThe Individual Has Received or Is Receiving Financial Counseling for the ProblemThe applicant has not received financial counseling from a legitimate source.
- AG ¶ 20(d)rejectedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant has made no good-faith effort to pay any of the creditors.
- AG ¶ 20(e)rejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant did not provide a reasonable basis to dispute any of the debts.
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 issuedJun 27, 2022
- Answer filed—Applicant requested a hearing.
- Hearing heldAug 28, 2023Hearing convened as scheduled.
- Decision dateSep 21, 2023
Cite For
- Failure to Mitigate Financial Concerns Under Guideline F
- Lack of Credibility in Testimony Regarding Financial Responsibility
- Significant Delinquent Debts Impacting Security Clearance Eligibility