Summary
A 53-year-old program manager was denied a security clearance under Guideline F, Financial Considerations, due to unresolved financial issues. These included a significant judgment and a history of tax delinquency. Specifically, the applicant had an IRS lien for $21,834 entered in April 2012, which was later satisfied. However, a 2014 judgment for $61,744 remained outstanding.
Disqualifying conditions cited included a history of not meeting financial obligations, an inability or unwillingness to satisfy debts, and a pattern of financial irresponsibility. While mitigating conditions such as the debt not being due to circumstances beyond the applicant's control and the applicant having initiated good-faith efforts to resolve some debts were considered, they were not sufficient to overcome the concerns.
The denial was primarily based on the applicant's outstanding $61,744 judgment, which he stated he did not intend to pay. The financial issues were deemed recent, ongoing, and unresolved, indicating a lack of willingness to satisfy debts. Furthermore, the applicant failed to provide evidence to substantiate his dispute of the judgment or demonstrate good-faith efforts toward its resolution.
Why the Applicant Was Denied
- The applicant has an outstanding judgment of $61,744 against him, which he does not intend to pay.
- The applicant's financial issues are recent, ongoing, and unresolved, indicating a lack of willingness to satisfy debts.
- The applicant did not provide evidence to substantiate his dispute of the judgment or demonstrate good-faith efforts to resolve it.
Conditions Referenced
- AG ¶ 19(b)raisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(f)raisedFailure to File or Pay Annual Federal Income Tax as Required
- 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)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlThe applicant did not act responsibly regarding the judgment.
- AG ¶ 20(d)rejectedIndividual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue CreditorsThe applicant has not made good-faith efforts to resolve the judgment.
- AG ¶ 20(e)rejectedIndividual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant did not provide evidence supporting his dispute of the judgment.
- AG ¶ 20(g)appliedIndividual Has Made Arrangements with the Appropriate Tax Authority to File or Pay the Amount OwedThe applicant satisfied the tax lien in June 2017.
Key Rule Quoted
“An applicant has the ultimate burden of demonstrating that it is clearly consistent with the national interest to grant or continue his security clearance.”
Procedural Posture
- SOR issuedJun 28, 2017
- Answer filedJul 17, 2017Requested decision on the record without a hearing.
- Hearing held—No hearing; decision made on the record.
- Decision dateMay 10, 2018
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations Under Guideline F
- Importance of Demonstrating Good-faith Efforts to Resolve Debts
- Impact of Financial Irresponsibility on Security Clearance Eligibility