Summary
The applicant, a 46-year-old military veteran, faced security concerns under Guideline F due to financial issues, including delinquent debts and a history of bankruptcy. The judge found that the applicant failed to demonstrate responsible financial management and did not adequately mitigate the concerns related to his wife's gambling habits, resulting in a denial of his security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant has a payment plan with the IRS that began in October 2014, and he has been making consistent payments (1.a). Applicant owes the IRS approximately $35,269 for delinquent income taxes (1.b). Applicant provided proof that he settled the debt in SOR ¶ 1.c ($215) (1.c). Applicant acknowledged he still owes the second mortgage (SOR 1.d - $58,715) (1.d). He is making payments of $365 on the debt in SOR ¶ 1.e ($7,962) and provided proof that he has been making payments since January 2016 (1.e). Applicant indicated he was going to research the validity of the medical debts in SOR ¶¶ 1.p ($413) and 1.q ($115) (1.f). Applicant stated he was making payments on the debt in SOR ¶ 1.j (original balance $160) and the balance had increased to $1,203 (1.g). He provided a letter from the creditor for the debt in SOR ¶ 1.h ($65) that he made a payment to resolve this debt (1.h). The debt in SOR ¶ 1.i ($130) was settled in full and proof was provided (1.i). Applicant stated that he was told that each one was 'settled.' (1.j). He settled the debt in SOR ¶ 1.o ($1,647) and provided proof (1.o).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c), AG ¶ 19(i). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(d), AG ¶ 20(c). The decision turned on the following: Applicant has numerous delinquent debts and unpaid Federal income taxes; Applicant's financial irresponsibility was exacerbated by his wife's compulsive gambling; Insufficient evidence was provided to conclude that Applicant's behavior is unlikely to recur.
Why the Applicant Was Denied
- Applicant has numerous delinquent debts and unpaid Federal income taxes.
- Applicant's financial irresponsibility was exacerbated by his wife's compulsive gambling.
- Insufficient evidence was provided to conclude that Applicant's behavior is unlikely to recur.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(i)raisedCompulsive or Addictive Gambling
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlApplicant's financial problems were within his control as he knowingly supported his wife's gambling.
- AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue CreditorsApplicant made some payments on smaller debts but did not provide sufficient evidence for others.
- AG ¶ 20(c)rejectedReceived Counseling for the ProblemNo evidence was presented that Applicant received financial counseling.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedDec 13, 2015
- Answer filedJan 22, 2016Applicant elected to have the case decided on the written record.
- Hearing held—No hearing; decided on the written record.
- Decision dateDec 15, 2016
Cite For
- Failure to Mitigate Financial Concerns Under Guideline F
- Impact of Compulsive Gambling on Financial Responsibility
- Insufficient Evidence of Responsible Financial Management Leading to Denial of Clearance.