Summary
A 43-year-old married defense contractor was denied a security clearance under Guideline F, Financial Considerations, due to a history of unresolved financial issues. The Statement of Reasons cited his failure to file a federal income tax return for tax year 2009 and an outstanding debt of $623 to a cable television company. These issues raised disqualifying conditions related to a history of not meeting financial obligations and an inability or unwillingness to satisfy debts.
While mitigating conditions were considered, the applicant ultimately failed to demonstrate sufficient resolution of his financial problems. He had multiple unresolved debts totaling approximately $3,005 and did not provide evidence of efforts to resolve or dispute several of these obligations.
The denial was based on the applicant's recent financial irresponsibility, which occurred as a mature adult, and his failure to demonstrate responsible management of his remaining debts. This led to concerns regarding his reliability and trustworthiness, resulting in the denial of his security clearance.
Why the Applicant Was Denied
- The applicant had multiple unresolved debts totaling approximately $3,005.
- The applicant did not provide evidence of efforts to resolve or dispute several debts.
- The applicant's financial irresponsibility was recent and occurred when he was a mature adult.
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 Infrequent, or Unlikely to RecurThe applicant's financial irresponsibility was recent and ongoing.
- AG ¶ 20(b)rejectedConditions Resulting in Financial Problems Were Largely Beyond the Person's ControlThe applicant did not demonstrate that his financial issues were beyond his control.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue Creditors or Resolve DebtsThe applicant failed to show evidence of good-faith efforts to resolve his debts.
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 issuedNov 1, 2015
- Answer filedNov 24, 2015
- Hearing held—Decided on the written record.
- Decision dateMay 31, 2017
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Importance of Demonstrating Good-faith Efforts to Resolve Debts
- Impact of Recent Financial Irresponsibility on Security Clearance Eligibility