Summary
A 37-year-old divorced father of four and former Navy service member was denied a security clearance under Guideline F, Financial Considerations. The applicant faced allegations of unresolved financial issues, specifically failing to file his 2014 Federal and state income tax returns.
The judge determined that the applicant demonstrated a history of being unable or unwilling to meet financial obligations, which began in 2013 and persisted. This included the failure to timely file his 2014 Federal and state income tax returns.
Crucially, the applicant did not provide sufficient evidence to show that he had resolved or was actively resolving any of the alleged debts. Consequently, the judge found that the applicant failed to mitigate the financial concerns, leading to the denial of his security clearance.
Why the Applicant Was Denied
- The applicant has a history of being unable or unwilling to meet financial obligations, which began in 2013 and continues to present.
- He failed to timely file Federal and state income tax returns for 2014.
- The applicant did not provide evidence that he resolved or was resolving any of the alleged 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(b)rejectedConditions Largely Beyond ControlThe applicant's choice to attend school full-time for three years was a circumstance within his control.
- AG ¶ 20(c)rejectedFinancial CounselingThere is no evidence that the applicant participated in financial or credit counseling.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsThe applicant did not provide evidence of good-faith efforts to resolve debts.
- AG ¶ 20(g)rejectedArrangements with Tax AuthorityThe applicant did not submit evidence that he filed his 2014 Federal and state income tax returns.
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 issuedApr 26, 2017
- Answer filedJun 8, 2017Signed but undated response.
- Hearing held—Decided on the written record without a hearing.
- Decision dateJun 13, 2018
Cite For
- Failure to Mitigate Financial Considerations Under Guideline F
- Impact of Unresolved Debts on Security Clearance Eligibility
- Importance of Providing Evidence in Response to Allegations of Financial Irresponsibility