Summary
The applicant, a 46-year-old defense contractor employee, faced security clearance denial under Guideline F due to unresolved financial issues, including multiple tax liens and delinquent accounts totaling approximately $26,341. The judge found insufficient evidence of the applicant's efforts to mitigate these financial concerns, leading to the conclusion that the applicant's financial situation was not under control.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: a state tax lien entered against him in 2011 in the amount of $16,183 (1.a). a state tax lien entered against him in 2012 in the amount of $7,566 (1.b). a bank credit card with a $2,000 credit limit and an unpaid balance of $1,579, of which $628 was past due (1.c). an automobile loan with a high credit of $16,718 and an unpaid and past-due balance of $482 that was charged off in December 2014 (1.d). a furniture store account with an unpaid balance of $472 (1.e). a medical account with an unpaid balance of $59 (1.f).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(b), AG ¶ 19(c), AG ¶ 19(f). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), AG ¶ 20(e), AG ¶ 20(g). The decision turned on the following: Applicant has a lengthy history of financial problems dating back to 1999; Applicant failed to provide documentation to support claims of resolving debts or financial counseling; The judge concluded that the applicant's financial situation is not under control and lacks evidence of good-faith efforts to resolve debts.
Why the Applicant Was Denied
- Applicant has a lengthy history of financial problems dating back to 1999.
- Applicant failed to provide documentation to support claims of resolving debts or financial counseling.
- The judge concluded that the applicant's financial situation is not under control and lacks evidence of good-faith efforts to resolve debts.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(b)raisedUnwillingness to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 19(f)raisedFailure to File or Fraudulently Filing Tax Returns
- AG ¶ 20(a)rejectedBehavior Occurred Long Ago or InfrequentlyThe applicant's financial issues are ongoing and recent.
- AG ¶ 20(b)rejectedConditions Largely Beyond ControlInsufficient evidence that financial issues were beyond the applicant's control.
- AG ¶ 20(c)rejectedReceived Financial CounselingNo evidence of financial counseling provided.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsLack of evidence showing a good-faith effort to resolve debts.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute DebtsClaims of disputes were not supported by documentation.
- AG ¶ 20(g)rejectedArrangements with Tax AuthorityNo evidence of arrangements made with tax authorities.
Key Rule Quoted
“Eligibility for a security clearance is denied.”
Procedural Posture
- SOR issuedJun 15, 2017
- Answer filedJul 25, 2017Applicant elected to proceed without a hearing.
- Hearing held—Written record decision.
- Decision dateFeb 1, 2018
Cite For
- Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
- Insufficient Evidence of Good-faith Efforts to Resolve Debts
- Importance of Documentation in Mitigating Financial Concerns