Summary
A 59-year-old defense contractor and Army veteran was denied a security clearance under Guideline F (Financial Considerations) due to unresolved financial issues. The Statement of Reasons cited a federal tax lien from October 2010 for approximately $25,709, which remained unresolved despite some payments. Additionally, the applicant had five delinquent debts totaling approximately $25,337, and his claim of catching up on mortgage payments was contradicted by his credit report.
Disqualifying conditions F.1.a, F.1.b, F.1.c, and F.1.f were raised, while mitigating conditions F.2.b, F.2.c, F.2.d, and F.2.g were applied. However, the applicant's Chapter 13 bankruptcy was dismissed due to non-payment, and he failed to provide evidence of a good-faith effort to resolve his debts.
Despite some evidence of financial counseling and recent payments on certain obligations, the applicant did not demonstrate a consistent and responsible approach to managing his financial responsibilities. The decision concluded that the applicant failed to submit sufficient documentation to show responsible financial management, leading to the denial of his security clearance.
Why the Applicant Was Denied
- The applicant has unresolved delinquent debts totaling approximately $25,337 and a federal tax lien that remains unresolved despite some payments made.
- The applicant's Chapter 13 bankruptcy was dismissed due to non-payment, and he failed to provide evidence of a good-faith effort to resolve his debts.
- The applicant did not submit sufficient documentation to demonstrate that he was managing his financial obligations responsibly.
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.bappliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- F.2.cappliedThe Individual Has Received or Is Receiving Financial Counseling for the Problem
- F.2.drejectedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- F.2.gappliedThe 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, 2018Remanded on May 16, 2018, and final decision issued on July 16, 2018.
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations Under Guideline F
- Impact of Dismissed Bankruptcy on Security Clearance Eligibility
- Consideration of Financial Counseling in Security Clearance Decisions