Summary
A 29-year-old defense contractor employee and former U.S. Army member was denied a security clearance under Guideline F, Financial Considerations, due to unresolved financial issues. The Statement of Reasons detailed several delinquent and unpaid debts, including a $125 utility account, a $428 bank credit card, and a $1,233 cell phone account sold to a debt purchaser. Additionally, an automobile loan for a 2007 Cadillac resulted in a repossession with an unpaid balance of $7,876, and another bank credit card had an unpaid balance of $422.
Disqualifying conditions under Guideline F were raised, while mitigating conditions were also considered. However, the applicant failed to provide documentation to support claims of debt resolution. Furthermore, the applicant did not file a federal income tax return for 2010, attributing this omission to forgetfulness.
The judge determined that the applicant's financial situation demonstrated a lack of control and responsibility, and insufficient evidence was presented to mitigate these concerns. Consequently, granting a security clearance was deemed inconsistent with national interest, and the application was DENIED.
Why the Applicant Was Denied
- Applicant failed to provide documentation supporting claims of debt resolution.
- Applicant did not file his federal income tax return for 2010, citing forgetfulness as the reason.
- Applicant's financial situation was characterized by a lack of control and responsibility.
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
- AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- AG ¶ 20(c)rejectedEvidence of Financial Counseling or That the Problem Is Being Resolved
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue Creditors or Resolve Debts
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 issuedAug 21, 2015
- Answer filedOct 23, 2015Initial date September 8, 2015, redated.
- Hearing heldMar 21, 2016Applicant elected for a written record.
- Decision dateFeb 6, 2017
Cite For
- Failure to Mitigate Financial Considerations Under Guideline F
- Insufficient Evidence of Good-faith Efforts to Resolve Debts
- Impact of Failure to File Tax Returns on Security Clearance Eligibility