Summary
The applicant, a 44-year-old logistics worker, faced security clearance denial under Guideline F due to significant financial issues, including three judgments, a delinquent account, and a $42,000 federal tax lien. Despite attributing his financial troubles to job loss, divorce, and medical expenses, he failed to provide sufficient evidence of efforts to resolve his debts, leading to the denial of his clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: A $1,642 judgment was obtained against Applicant for unpaid rent (1.a). A $2,118 judgment was entered against Applicant when he failed to repay a loan (1.b). A $10,542 federal tax lien was entered against an individual with the same name as Applicant living in Michigan (1.c). The IRS filed a $42,092 tax lien against Applicant (1.d). Applicant owes a cable TV supplier $350 for service discontinued in July 2007 (1.f). Applicant owes a telephone company $215 on an account closed in July 2008 (1.g). Applicant owes $1,238 to a collection agency collecting for a credit card account opened in 2003 (1.h). A construction company obtained a $3,700 judgment against Applicant (1.l). A $84,853 federal tax lien was entered against an individual with the same name as Applicant living in Florida (1.m). A $99,702 federal tax lien was entered against an individual with the same name as Applicant living in Florida (1.n).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c), AG ¶ 19(g). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), AG ¶ 20(e). The decision turned on the following: Applicant has three judgments and a delinquent account totaling approximately $11,000; Applicant has an unpaid $42,000 federal tax lien and failed to file tax returns for 1994 and 1995; Applicant did not provide documentation of efforts to repay debts or resolve financial issues.
Why the Applicant Was Denied
- Applicant has three judgments and a delinquent account totaling approximately $11,000.
- Applicant has an unpaid $42,000 federal tax lien and failed to file tax returns for 1994 and 1995.
- Applicant did not provide documentation of efforts to repay debts or resolve financial issues.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(g)raisedFailure to File Annual Federal, State, or Local Income Tax Returns as Required
- AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- AG ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the ProblemNo clear indication that the problem is being resolved or is under control.
- AG ¶ 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue CreditorsApplicant has made no good-faith effort to repay his debts.
- AG ¶ 20(e)rejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due DebtApplicant provided no documentation supporting his disputes.
Key Rule Quoted
“Any doubt concerning personnel being considered for access to classified information will be resolved in favor of national security.”
Procedural Posture
- SOR issuedOct 29, 2009
- Answer filedJan 5, 2010Applicant elected to proceed without a hearing.
- Hearing held—No hearing; matter decided on the written record.
- Decision dateMay 13, 2010
Cite For
- Financial Irresponsibility Under Guideline F
- Failure to Mitigate Financial Issues
- Impact of Unresolved Debts on Security Clearance Eligibility