Summary
A 59-year-old defense contractor and Army veteran was denied a security clearance under Guideline F (Financial Considerations) due to multiple unresolved financial issues. The Statement of Reasons cited a federal tax lien from October 2010 for approximately $25,709, five delinquent debts totaling approximately $25,337, and an unresolved mortgage debt despite the applicant's claims of making payments. The applicant also admitted to taking no action to resolve the remaining debts listed in the Statement of Reasons.
The judge identified several disqualifying conditions, including a history of not meeting financial obligations and an inability or unwillingness to satisfy debts. While mitigating conditions such as the debts not being recent, the applicant's efforts to resolve them, and the debts being caused by circumstances beyond the applicant's control were considered, they were not sufficient to overcome the security concerns.
The denial was based on the applicant's multiple unresolved debts exceeding $50,000, which included the federal tax lien and a dismissed Chapter 13 bankruptcy. The applicant failed to provide documentation of payments or financial counseling, demonstrating a lack of financial responsibility. Furthermore, the applicant's assertions of financial improvement were unsupported by evidence, raising doubts about his reliability and trustworthiness.
Why the Applicant Was Denied
- Applicant has multiple unresolved debts totaling over $50,000, including a federal tax lien and a dismissed Chapter 13 bankruptcy.
- The applicant failed to provide documentation of payments or financial counseling, indicating a lack of financial responsibility.
- The applicant's claims of financial improvement were unsupported by evidence, leading to doubts about his reliability and trustworthiness.
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
- F.2.arejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur and Does Not Cast Doubt on the Individual's Current Reliability, Trustworthiness, or Good Judgment
- F.2.brejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- F.2.crejectedThe Individual Has Received or Is Receiving Financial Counseling for the Problem From a Legitimate and Credible Source
- F.2.drejectedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- F.2.grejectedThe Individual Has Made Arrangements with the Appropriate Tax Authority to File or Pay the Amount Owed and Is in Compliance with Those Arrangements
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedDec 2, 2016
- Answer filedFeb 14, 2017
- Hearing heldAug 16, 2017
- Decision dateJan 25, 2018
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Insufficient Evidence of Financial Responsibility Under Guideline F
- Impact of Dismissed Bankruptcy on Security Clearance Eligibility