Summary
A 33-year-old structural mechanic for a defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to unresolved financial issues. The Statement of Reasons detailed a federal tax lien from May 2014 for $528, a child support arrearage of $7,820, and four delinquent consumer debts exceeding $2,000. Additionally, the applicant had a charged-off auto loan for $2,296, a consumer debt in collection for $688, and a medical account in collection for $156.
Disqualifying conditions related to financial irresponsibility and a pattern of financial difficulties were raised. While mitigating conditions concerning the debts not being recent, the applicant seeking assistance, and the issues being largely beyond his control were considered, these were insufficient to overcome the concerns.
The denial was based on the applicant's failure to provide documentation of compliance with court-ordered child support payments and a history of unresolved delinquent debts, including child support arrears exceeding $35,000 and other consumer debts. These financial issues raised concerns about his reliability and trustworthiness to protect classified information.
Why the Applicant Was Denied
- The applicant did not provide documentation of compliance with court-ordered child support payments.
- The applicant has a history of unresolved delinquent debts, including child support arrears exceeding $35,000 and other consumer debts.
- The applicant's financial issues raise concerns about his reliability and trustworthiness to protect classified information.
Conditions Referenced
- DC ¶ 19(a)raisedInability to Satisfy Debts
- DC ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- DC ¶ 19(f)raisedFailure to File or Fraudulently Filing Annual Federal, State, or Local Income Tax Returns or Failure to Pay Annual Federal, State, Local Income Tax as Required
- MC ¶ 20(b)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant's extended unemployment contributed to his financial difficulties.
- MC ¶ 20(c)rejectedThe Individual Has Received or Is Receiving Financial Counseling for the Problem From a Legitimate and Credible SourceThe applicant did not provide evidence of effective financial counseling.
- MC ¶ 20(d)rejectedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant failed to document efforts to resolve debts.
- MC ¶ 20(e)notedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt
Key Rule Quoted
“Eligibility for access to classified information is denied.”
Procedural Posture
- SOR issuedDec 9, 2016
- Answer filedFeb 10, 2017
- Hearing heldAug 2, 2017
- Decision dateFeb 5, 2018
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Importance of Documented Compliance with Court Orders in Financial Cases
- Impact of Financial Irresponsibility on Security Clearance Eligibility