Summary
A 51-year-old veteran was denied a security clearance under Guideline F (Financial Considerations) due to unresolved debts totaling approximately $64,000. The Statement of Reasons cited three specific allegations: an admitted $20,000 credit card debt in collection, an admitted $30,000 personal loan in collection, and a $14,000 tax lien filed by the IRS.
The judge identified disqualifying conditions under Adjudicative Guidelines (AG) ¶ 19(a), AG ¶ 19(c), and AG ¶ 19(f). While mitigating conditions AG ¶ 20(b), AG ¶ 20(d), and AG ¶ 20(g) were considered, they were not sufficient to overcome the concerns.
The denial was based on the finding that the applicant's financial problems were ongoing and unresolved. There was insufficient evidence to demonstrate good-faith efforts to pay debts or overall financial responsibility. Additionally, a lack of information regarding the applicant's current financial situation and employment history contributed to the decision.
Why the Applicant Was Denied
- Applicant's financial problems are ongoing and unresolved.
- Insufficient evidence of good-faith efforts to pay debts or financial responsibility.
- Lack of information regarding current financial situation and employment history.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(f)raisedFailure to File or Fraudulently Filing Annual Federal, State or Local Income Tax Returns or Failure to Pay Annual Federal, State, or Local Income Tax
- AG ¶ 20(b)rejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlApplicant failed to explain the circumstances surrounding his unemployment.
- AG ¶ 20(d)rejectedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsInsufficient evidence of established payment arrangements or consistent payments.
- AG ¶ 20(g)rejectedThe Individual Has Made Arrangements with the Appropriate Tax Authority to File or Pay the Amount Owed and Is in Compliance with Those ArrangementsNo evidence of payments made pursuant to the claimed installment agreement with the IRS.
Key Rule Quoted
“Once a concern arises regarding an Applicant’s security clearance eligibility, there is a strong presumption against the grant or maintenance of a security clearance.”
Procedural Posture
- SOR issuedNov 7, 2017
- Answer filedDec 20, 2017Requested decision based on written record.
- Hearing held—No hearing; decision based on written record.
- Decision dateJul 5, 2018
Cite For
- Insufficient Evidence of Financial Responsibility Under Guideline F
- Ongoing Financial Problems as a Basis for Denial
- Burden of Proof on Applicant to Mitigate Financial Concerns