Summary
The applicant, a 45-year-old Mac Technician for the U.S. Navy, faced security clearance denial primarily due to significant financial issues, including over $27,000 in delinquent debts and unpaid taxes totaling approximately $16,561. Despite acknowledging his financial difficulties and taking steps towards resolution, the judge found insufficient evidence of financial responsibility and reliability, leading to the denial of the clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant is indebted to a creditor for a car loan account that was charged off in the approximate amount of $17,909 (1.a). Applicant is indebted to a creditor for a medical account that was placed for collection in the approximate amount of $6,161 (1.b). Applicant is indebted to a bank for a delinquent credit card account that was charged off in the approximate amount of $1,270 (1.c). Applicant is indebted to a bank for a delinquent credit card account that was placed for collection in the approximate amount of $1,028 (1.d). Applicant is indebted to a bank for a delinquent credit card account placed for collection in the approximate amount of $626 (1.e). Applicant is indebted to a creditor for a medical account that was placed for collection in the approximate amount of $371, which he claims has been paid (1.f). Applicant owes $15,195 in delinquent taxes to the Federal Government for tax year 2019 (1.g). Applicant owes $1,366 in delinquent taxes to the Federal Government for tax year 2016 (1.h).
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). The decision turned on the following: The applicant has multiple delinquent debts totaling over $27,000 and unpaid taxes of approximately $16,561; The applicant admitted to financial irresponsibility and failed to demonstrate sufficient evidence of resolving his debts; The applicant's ongoing tax issues and lack of a financial budget raised concerns about his reliability and trustworthiness.
Why the Applicant Was Denied
- The applicant has multiple delinquent debts totaling over $27,000 and unpaid taxes of approximately $16,561.
- The applicant admitted to financial irresponsibility and failed to demonstrate sufficient evidence of resolving his debts.
- The applicant's ongoing tax issues and lack of a financial budget raised concerns about his reliability and trustworthiness.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness 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(a)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- AG ¶ 20(b)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- AG ¶ 20(d)appliedThe Individual Initiated and Is Adhering to a Good Faith Effort to Repay Overdue Creditors or Otherwise Resolve 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 issuedSep 19, 2023
- Answer filedOct 2, 2023
- Hearing heldMar 4, 2024
- Decision dateMay 7, 2024
Cite For
- Financial Irresponsibility and Its Impact on Security Clearance Eligibility
- The Importance of Demonstrating Financial Responsibility in Security Clearance Cases
- The Application of Mitigating Conditions Under Guideline F in Financial Consideration Cases