Summary
A 46-year-old defense contractor with a Bachelor's degree in Business was denied a security clearance under Guideline F, Financial Considerations. The denial stemmed from allegations of financial irresponsibility, including approximately $35,818 in delinquent debts and a failure to timely file tax returns.
Specific allegations included multiple charged-off accounts, such as a $5,052 car loan and a $2,226 credit card, along with several accounts placed for collection, ranging from a $311 gym membership to a $10,369 balance on a repossessed vehicle. The applicant also owed the Federal Government approximately $13,211 for delinquent 2019 taxes and failed to timely file their 2023 Federal income tax return. While some debts were partially addressed or claimed to be paid, such as a $878 account settled in full and a $294 debt paid before the hearing, many remained unresolved.
The administrative judge found that the applicant's financial issues were significant and unresolved. Despite some efforts to address debts, the applicant did not consistently follow through with payment plans and continued to incur debt. Ultimately, the applicant failed to demonstrate sufficient financial responsibility and trustworthiness, leading to the denial of the security clearance.
Why the applicant was denied
- The applicant had a history of financial irresponsibility, including significant delinquent debts and failure to file tax returns timely.
- Despite some efforts to address debts, the applicant failed to follow through with payment plans and continued to incur debt.
- The applicant did not demonstrate sufficient responsibility or trustworthiness to access classified information.
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(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlWhile the applicant faced unexpected medical emergencies, he continued to incur debt that he knew he could not afford to pay.
- AG ¶ 20(d)rejectedThe Individual Initiated and Is Adhering to a Good Faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant failed to follow through with payment plans and did not establish a track record of payment.
Key rule quoted
“The protection of the national security is the paramount consideration.”
Procedural posture
- SOR issuedDec 23, 2024
- Answer filedJan 16, 2025
- Hearing heldApr 17, 2025
- Decision dateMay 13, 2025
Cite for
- Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
- Failure to Demonstrate Financial Responsibility and Trustworthiness
- Impact of Financial Irresponsibility on Security Clearance Eligibility