Summary
A 45-year-old defense contractor employee was denied a security clearance under Guideline F, Financial Considerations, due to a history of financial problems. The Statement of Reasons cited a judgment for an unpaid credit card, an underlying credit card debt, a state tax lien, and unpaid federal taxes for both 2014 and 2015.
Disqualifying conditions included a history of not meeting financial obligations, an inability or unwillingness to satisfy debts, and a demonstrated pattern of financial irresponsibility. While the applicant presented some evidence of efforts to address these issues, mitigating conditions such as the financial problems being caused by circumstances beyond the applicant's control, good-faith efforts to resolve the debts, and the problems being isolated or not recent were considered.
Ultimately, the judge found insufficient evidence to mitigate the ongoing financial concerns. The denial was based on the applicant's history of financial problems, the lack of evidence regarding the status of his unpaid 2015 federal income taxes, and the recent and ongoing nature of his financial issues, which raised doubts about his reliability and judgment.
Why the Applicant Was Denied
- The applicant has a history of financial problems, including a judgment for an unpaid credit card and unpaid taxes.
- The applicant did not provide evidence of the status of his 2015 federal income taxes, which remain unpaid.
- The applicant's financial issues are recent and ongoing, casting doubt on his reliability and judgment.
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 as Required
- AG ¶ 20(d)appliedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant sent a letter to the judgment holder offering to pay $250 per month.
- AG ¶ 20(g)appliedThe Individual Has Made Arrangements with the Appropriate Tax Authority to File or Pay the Amount Owed and Is in Compliance with Those ArrangementsThe applicant paid his 2014 federal income taxes in October 2017.
- AG ¶ 20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurThe applicant's financial issues are recent and ongoing.
- AG ¶ 20(b)rejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant's financial overextension was not beyond his control.
- AG ¶ 20(c)rejectedThe Individual Has Received or Is Receiving Financial Counseling for the Problem From a Legitimate and Credible SourceNo evidence of financial counseling was provided.
Key Rule Quoted
“Any doubt concerning personnel being considered for national security eligibility will be resolved in favor of the national security.”
Procedural Posture
- SOR issuedJun 16, 2017
- Answer filedAug 27, 2017Applicant elected to have the case decided on the written record.
- Hearing held—No hearing; case decided on written record.
- Decision dateMar 30, 2018
Cite For
- Denial of Security Clearance Due to Ongoing Financial Issues Under Guideline F
- Insufficient Evidence to Mitigate Financial Concerns Despite Some Efforts to Repay Debts
- Importance of a Track Record of Debt Repayment in Security Clearance Evaluations.