Summary
A 55-year-old married technical account manager for a defense contractor was denied a security clearance under Guideline F, Financial Considerations. The denial stemmed from approximately $375,000 in delinquent debt, which included a mortgage and a car loan. The Statement of Reasons also cited delinquent state income taxes and multiple Chapter 13 bankruptcy filings between 2001 and 2008.
Disqualifying conditions under Guideline F were raised, specifically AG ¶ 19(a), AG ¶ 19(c), and AG ¶ 19(f). While mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), and AG ¶ 20(g) were applied, they were insufficient to overcome the security concerns.
The denial was primarily due to the applicant's substantial delinquent debt and his failure to provide evidence of his current financial situation or plans to resolve these debts. The long-standing nature of his financial problems, evidenced by the repeated bankruptcy filings, further contributed to the decision. The applicant admitted to all allegations but did not offer information regarding the status or resolution of his financial obligations.
Why the Applicant Was Denied
- Applicant has approximately $375,000 of delinquent debt, including a delinquent mortgage and car loan.
- Applicant admitted all allegations but provided no information about the status of his debts or plans to resolve them.
- Applicant's financial problems appear to be longstanding, with multiple Chapter 13 bankruptcy filings between 2001 and 2008.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(f)raisedFailure 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 RecurApplicant failed to provide any explanation for the delinquent debt.
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlApplicant did not provide evidence of circumstances beyond his control.
- AG ¶ 20(c)rejectedReceived or Is Receiving Counseling for the ProblemNo evidence of counseling was provided.
- AG ¶ 20(d)rejectedInitiated and Is Adhering to a Good-faith Effort to Repay Overdue CreditorsApplicant did not demonstrate any efforts to resolve debts.
- AG ¶ 20(g)rejectedMade Arrangements with the Appropriate Tax AuthorityApplicant did not provide evidence of arrangements with tax authorities.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedDec 10, 2016
- Answer filedJan 30, 2017Applicant requested a decision based on the written record.
- Hearing held—No hearing; decision based on written record.
- Decision dateNov 22, 2017
Cite For
- Failure to Mitigate Financial Considerations Under Guideline F
- Importance of Providing Evidence of Financial Status and Plans to Resolve Debts
- Application of Disqualifying Conditions Related to Financial Obligations