Summary
A 45-year-old applicant with a doctorate was denied a security clearance under Guideline F, Financial Considerations, due to over $394,893 in unresolved debts. The Statement of Reasons detailed multiple financial delinquencies, including unpaid federal income taxes for 2009 and 2010, and state income taxes for 2010. Additionally, the applicant failed to file federal and state income tax returns for 2012 and 2013, and did not pay the resulting taxes.
Further allegations included a 2011 judgment for $152,345, a delinquent mortgage account totaling $11,920, and two delinquent credit card accounts amounting to $6,493 and $4,277, respectively. The applicant also owed $4,663 to a university, $4,365 on a collection account, and approximately $3,215 across 20 delinquent medical debts.
The denial was based on the applicant's failure to resolve these significant debts and, critically, the inability to provide documentation to substantiate claims of debt resolution or payment arrangements. This lack of evidence led the judge to conclude that the applicant's reliability and trustworthiness were in significant doubt.
Why the Applicant Was Denied
- Applicant owes more than $394,893 in unresolved consumer, educational, and medical debt.
- Applicant failed to pay his 2009 and 2010 Federal income taxes and his 2010 state income taxes.
- Applicant did not file his 2012 and 2013 Federal and state income tax returns or pay the resulting taxes.
- Applicant did not provide documentation to substantiate claims of debt resolution or payment arrangements.
Conditions Referenced
- F.1.araisedInability to Satisfy Debts
- F.1.braisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- F.1.craisedA History of Not Meeting Financial Obligations
- F.1.fraisedFailure 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
Key Rule Quoted
“Failure to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness, and ability to protect classified or sensitive information.”
Procedural Posture
- SOR issuedSep 20, 2016
- Answer filedJan 5, 2017
- Hearing held—Decided on the written record without a hearing.
- Decision dateOct 12, 2017
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Failure to Provide Documentation Supporting Claims of Debt Resolution
- Significant Doubt Regarding Reliability and Trustworthiness Due to Financial Issues