Summary
A 61-year-old systems and software engineer was denied a security clearance under Guideline F, Financial Considerations. The applicant had over $143,000 in delinquent debts and failed to file a tax return, despite consistent employment since 2015. One specific allegation noted an account in collection for $1,002.
Disqualifying conditions related to financial irresponsibility were raised, while several mitigating conditions were also applied. However, these were insufficient to overcome the concerns.
The denial was based on the applicant's long history of financial irresponsibility, including significant debts and a prior bankruptcy. He did not demonstrate a responsible approach to resolving his delinquent debts, particularly his federal tax obligations. The applicant's financial stability and investment decisions were also found to reflect poorly on his judgment and reliability.
Why the Applicant Was Denied
- The applicant has a long history of financial irresponsibility, including significant debts and a prior bankruptcy discharge.
- He failed to demonstrate a responsible approach to resolving his delinquent debts, particularly his Federal tax obligations.
- The applicant's financial stability and decision-making regarding investments reflect poorly on his judgment and reliability.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(b)raisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- 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)rejectedBehavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- AG ¶ 20(c)rejectedReceived or Is Receiving Financial Counseling
- AG ¶ 20(d)rejectedInitiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors
- AG ¶ 20(e)appliedHas a Reasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant disputed the legitimacy of some debts, including those related to a tax relief attorney.
Key Rule Quoted
“"[N]o one has a ‘right’ to a security clearance." Department of the Navy v. Egan, 484 U.S. 518, 528 (1988).”
Procedural Posture
- SOR issuedJul 4, 2016
- Answer filedJul 8, 2016
- Hearing heldApr 4, 2017
- Decision dateJan 18, 2018
Cite For
- Financial Irresponsibility Under Guideline F
- Impact of Unresolved Debts on Security Clearance Eligibility
- Disputing Legitimacy of Debts as a Mitigating Factor