Summary
The applicant, a 34-year-old electronics repair technician with unresolved financial issues, contested the denial of his security clearance under Guideline F. The judge found that the applicant failed to mitigate concerns related to a federal tax lien, consumer debt, and student loans, leading to a denial of his clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant admitted the allegation in 1.a as to the 2013 federal tax lien in the amount of $16,717 (1.a). The delinquent debts on the SOR, which amount to approximately $63,000, are reflected on the credit reports in the record (1.b). Applicant filed for Chapter 13 bankruptcy in May 2013, and it was dismissed in July 2013 (1.c). He filed for Chapter 13 bankruptcy in August 2013, and it was dismissed in October 2013 (1.d). The debts at subparagraphs 1.j, 1.k, i. and 1.l, were either claimed to be paid, not his debt, or he simply ignored (1.e). The remaining fourteen debts at 1.b, 1e.-1.i and 1.m to 1.t (1.f). He provided no documentation supporting a payment plan (1.g). He provided no evidence of any payments or plans for the delinquent debts, including the student loans (1.h). He also denied owing the student loans which appear on his credit report (1.i). Applicant stated during his investigative interview, that he planned to pay the accounts in full by April 2016 (1.j). Applicant noted that he was working with Lexington Law (a debt consolidation firm) so that he could get his financial issues in order (1.k). Applicant earns approximately $6,000 every two weeks in net pay (1.l). His wife also works, and her monthly pay is about $1,400 (1.m). He has about $2,000 in savings, and about $5,000 in checking (1.n). Applicant's financial problems are ongoing and were not caused by events beyond his control (1.o). Failure to meet one’s financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations (1.p). Applicant presented no evidence to mitigate the concerns about his tax debt or any payment plans or payments for all the other delinquent debts (1.q). The investigation also revealed that Applicant owes state taxes (1.r). The award of a security clearance is not a once-in-a-lifetime occurrence, but is based on applying the factors, both disqualifying and mitigating, to the evidence presented (1.s). While a favorable decision is not warranted at this time, he may present persuasive evidence of financial rehabilitation and reform in the future (1.t).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The decision turned on the following: The applicant did not provide evidence of a payment plan for his federal tax lien; He failed to demonstrate resolution of approximately $63,000 in delinquent debts; The applicant denied owing student loans that appeared on his credit report.
Why the Applicant Was Denied
- The applicant did not provide evidence of a payment plan for his federal tax lien.
- He failed to demonstrate resolution of approximately $63,000 in delinquent debts.
- The applicant denied owing student loans that appeared on his credit report.
Conditions Referenced
- AG ¶ 19(a)raisedFinancial Considerations
- AG ¶ 19(c)raisedFinancial Considerations
Key Rule Quoted
“Failure to meet one’s 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 issuedOct 29, 2016
- Answer filed—Applicant requested an administrative determination.
- Hearing held—Case assigned on 10/01/2017.
- Decision dateOct 3, 2017
Cite For
- Failure to Mitigate Financial Issues Under Guideline F
- Impact of Unresolved Financial Obligations on Security Clearance Eligibility
- Consideration of the Whole-person Concept in Security Clearance Decisions