Summary
The applicant, a 56-year-old supply specialist for a defense contractor, faced security clearance denial under Guideline F due to unresolved financial issues, including a history of failing to file tax returns and delinquent debts totaling approximately $28,639. The judge found that the applicant did not provide sufficient evidence to demonstrate that her financial situation had improved or that she was making a good-faith effort to resolve her debts.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: There is a debt to the federal Government in the amount of $25,737.63 for delinquent taxes for the tax years 2006, 2008, 2009, 2010, 2011, and 2013, that Applicant contends she is in the process of paying off at the rate of $400 per month (1.a). There is a bank credit card with an unpaid balance of $782 that was placed for collection when Applicant was unable to make monthly payments for the laptop and video games she had previously purchased (1.c). There is a medical account with an unpaid balance of $75 that was placed for collection (1.d). There is a charge account with a clothing store (where Applicant purchased some bridal clothing) with a credit limit of $1,500 and an unpaid balance of $1,235 that was placed for collection and charged off (1.e). There is a charge account with a clothing store with a credit limit of $400 that was placed for collection and charged off in the amount of $809 (1.f).
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(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d). The decision turned on the following: The applicant failed to provide documentation supporting her claims of resolving delinquent debts; The applicant's financial issues were ongoing and included a history of not filing tax returns on time; The applicant prioritized family expenditures over addressing her financial obligations.
Why the Applicant Was Denied
- The applicant failed to provide documentation supporting her claims of resolving delinquent debts.
- The applicant's financial issues were ongoing and included a history of not filing tax returns on time.
- The applicant prioritized family expenditures over addressing her financial obligations.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 19(g)raisedFailure to File Annual Federal, State, or Local Income Tax Returns
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago or InfrequentlyThe applicant's financial issues were ongoing and not infrequent.
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlThe applicant's financial problems were not shown to be beyond her control.
- AG ¶ 20(c)rejectedReceived or Receiving CounselingThe applicant did not provide evidence of financial counseling.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant failed to demonstrate a good-faith effort to resolve her 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 issuedOct 31, 2015
- Answer filedNov 23, 2015
- Hearing heldJul 11, 2016
- Decision dateMar 27, 2017
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Failure to Provide Documentation Supporting Claims of Financial Resolution
- Prioritization of Family Expenses Over Debt Repayment as a Factor in Financial Considerations