Summary
A 57-year-old retired Army command sergeant major and president of a defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to significant unresolved financial issues totaling over $220,000. The Statement of Reasons detailed several specific debts, including a $174,744 tax lien for the 2004-2006 tax years, a $9,262 judgment from 2008, and a $5,625 past-due credit card debt. Additional debts included $7,802 owed to a collection agent, a $5,050 judgment from 2007, a $53 past-due account, and approximately $21,000 in past-due IRS taxes for 2010-2012.
The denial was based on the applicant's substantial unresolved debts, which raised concerns about his reliability and trustworthiness. Disqualifying conditions under Adjudicative Guidelines (AG) ¶ 19(a) and AG ¶ 19(c) were raised.
Despite some admissions of debt resolution, the applicant failed to provide sufficient evidence of financial responsibility or mitigation efforts. The applicant's financial difficulties had persisted for several years without clear indications of resolution, leading to the conclusion that his financial situation posed a risk to national security. Mitigating conditions under AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), and AG ¶ 20(d) were considered but ultimately not applied.
Why the Applicant Was Denied
- The applicant has over $220,000 in unresolved debts, raising concerns about reliability and trustworthiness.
- The applicant did not provide evidence of efforts to resolve his financial issues or demonstrate financial responsibility.
- The applicant's financial difficulties have persisted for several years without clear indications of resolution.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurThe applicant's financial difficulties have been ongoing and unresolved for several years.
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant did not provide sufficient evidence of responsible actions taken to mitigate financial issues.
- AG ¶ 20(d)rejectedThe Individual Has Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant failed to submit documentation supporting claims of debt resolution.
- AG ¶ 20(c)rejectedThere Are Clear Indications That the Problem Is Being Resolved or Is Under ControlThe applicant's financial situation remains unresolved with no evidence of improvement.
Key Rule Quoted
“Failure or inability to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness and ability to protect classified information.”
Procedural Posture
- SOR issuedJun 10, 2015
- Answer filedSep 9, 2015Applicant requested a decision without a hearing.
- Hearing held—No hearing was conducted.
- Decision dateSep 13, 2016
Cite For
- Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
- Importance of Providing Evidence of Financial Responsibility in Security Clearance Cases
- Impact of Ongoing Financial Difficulties on Security Clearance Eligibility