Summary
A 54-year-old Air Force veteran was denied a security clearance under Guideline F (Financial Considerations) due to a history of financial delinquencies. The Statement of Reasons detailed several outstanding debts, including an automobile loan of $18,593, a charged-off line of credit for $2,167, a telecommunications collection account of $1,316, a March 2015 judgment for $16,600, and two other collection accounts for $256 and $326.
Disqualifying conditions F.1.a, F.1.b, F.1.c, and F.1.f were raised, while mitigating conditions F.2.a, F.2.b, F.2.c, F.2.d, F.2.e, and F.2.g were applied. Despite some debts being resolved, the applicant's financial history included a Chapter 7 bankruptcy in 1997 and a failure to timely file and pay federal and state income taxes for multiple years, resulting in unresolved tax debts.
The denial was based on the applicant's long history of financial issues and his inability to provide sufficient evidence of financial counseling or a good-faith effort to repay remaining creditors. The ongoing financial problems and lack of demonstrated responsible financial management ultimately led to the denial of his security clearance.
Why the Applicant Was Denied
- The applicant has a long history of financial delinquencies, including a Chapter 7 bankruptcy in 1997.
- He failed to timely file and pay federal and state income taxes for multiple years, resulting in unresolved debts.
- The applicant did not provide sufficient evidence of financial counseling or a good-faith effort to repay remaining creditors.
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 JudgmentThe applicant has a long history of financial delinquencies.
- F.2.brejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlWhile some conditions were beyond his control, the applicant did not demonstrate responsible management of his delinquencies.
- F.2.crejectedThe Individual Has Received or Is Receiving Financial Counseling for the Problem From a Legitimate and Credible SourceThe applicant provided no documentation of financial counseling.
- F.2.drejectedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsInsufficient evidence to conclude he is making a good-faith effort to repay creditors.
- F.2.erejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant did not provide documentation to dispute his 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 ArrangementsThe applicant failed to provide evidence of compliance with tax arrangements.
Key Rule Quoted
“Failure to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness, and ability to protect classified or sensitive information.”
Procedural Posture
- SOR issuedFeb 15, 2017
- Answer filedMar 13, 2017
- Hearing heldAug 1, 2017Applicant testified pro se.
- Decision dateDec 29, 2017
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Impact of Tax Filing History on Security Clearance Eligibility
- Consideration of Whole-person Concept in Financial Delinquencies