Summary
A 52-year-old principal consultant was denied a security clearance due to financial considerations under Guideline F. The Statement of Reasons (SOR) alleged that the applicant failed to file federal and state tax returns for 2011 and 2012, failed to pay federal and state taxes for those years, and had an auto-loan account that was charged off. These issues raised disqualifying conditions related to financial irresponsibility.
While the applicant presented some evidence of mitigating conditions, including efforts to address her debts, the judge ultimately found these insufficient. Specifically, the applicant failed to provide adequate evidence that her financial problems were under control. Only one payment was made on a repayment plan, which was deemed insufficient to establish a consistent track record of payments.
Consequently, the applicant did not adequately address the specific allegations outlined in the SOR. The lack of demonstrated consistent repayment and control over her financial issues led to the denial of her security clearance application.
Why the Applicant Was Denied
- Applicant failed to provide sufficient evidence to demonstrate that her financial problems are under control.
- Only one payment was made on the repayment plan, insufficient to establish a track record of consistent payments.
- Applicant did not adequately address the specific allegations in the Statement of Reasons.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- 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 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(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurApplicant's financial issues are longstanding and unresolved.
- AG ¶ 20(b)rejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlApplicant did not provide adequate evidence to support this claim.
- AG ¶ 20(d)rejectedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsOnly one payment made on the repayment plan does not demonstrate adherence.
- 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 ArrangementsWhile tax issues were resolved, the overall financial situation remains concerning.
Key Rule Quoted
“A person who seeks access to classified information enters into a fiduciary relationship with the Government predicated upon trust and confidence.”
Procedural Posture
- SOR issuedFeb 8, 2018
- Answer filedFeb 18, 2018Applicant elected to have her case decided on the written record.
- Hearing held—No hearing; case decided on the written record.
- Decision dateJul 2, 2018
Cite For
- Insufficient Evidence of Financial Responsibility Under Guideline F
- Failure to Demonstrate a Consistent Repayment Track Record
- Rejection of Mitigating Conditions Due to Lack of Evidence