Summary
The applicant, a 55-year-old defense contractor with a military background, faced security clearance denial under Guideline F due to significant financial issues, including $123,953 in delinquent debts and failure to file tax returns. The judge found that the applicant's financial problems were not beyond his control and that he failed to demonstrate responsible financial behavior or efforts to resolve his debts.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant claims he paid the credit card debt in Subparagraph 1.a ($9,635) and his Exhibit I pertains to that debt and the one alleged in Subparagraph 1.h for $1,824 owed on the same bank’s issued credit card (1.a). The debt for $83 owed to another television service and alleged in Subparagraph 1.f is resolved. Applicant submitted an exhibit to show he paid that debt (1.f). Applicant admitted he owed a credit card gas bill alleged in Subparagraph 1.h for $1,824 in his Answer, and his response to the government investigator in March 2014 (1.h). The debts for the mortgage and property taxes were alleged in Subparagraphs 1.g and 1.j. The past-due monthly mortgage payments totaled $81,859. Applicant claims the $14,900 in property taxes were paid by the bank when it sold the house after foreclosure (1.j). Applicant owed $243 to a home security company as alleged in Subparagraph 1.i. He stopped payment on this account in September 2011. He stated he last had contact with the security company several years ago. He has not resolved this debt (1.k).
The judge denied the clearance. The government raised disqualifying conditions F.1.a, F.1.c, F.1.g. The judge applied mitigating conditions F.2.a, F.2.b, F.2.c, F.2.d, F.2.e. The decision turned on the following: Applicant has $123,953 in delinquent debts, indicating an inability to meet financial obligations; Applicant failed to file federal and state tax returns for 2013, raising concerns about financial responsibility; The applicant did not provide sufficient evidence to dispute the legitimacy of his debts.
Why the Applicant Was Denied
- Applicant has $123,953 in delinquent debts, indicating an inability to meet financial obligations.
- Applicant failed to file federal and state tax returns for 2013, raising concerns about financial responsibility.
- The applicant did not provide sufficient evidence to dispute the legitimacy of his debts.
Conditions Referenced
- F.1.araisedInability or Unwillingness to Satisfy Debts
- F.1.craisedA History of Not Meeting Financial Obligations
- F.1.graisedFailure to File Annual Federal, State, or Local Income Tax Returns as Required
- F.2.arejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurThe debts are recent and part of a pattern of unpaid financial obligations.
- F.2.brejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlApplicant's financial issues were due to his own spending choices.
- F.2.crejectedThe Person Has Received or Is Receiving Counseling for the ProblemFinancial problems are not under control or resolved.
- F.2.drejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsApplicant did not demonstrate a good-faith effort to repay debts.
- F.2.erejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due DebtApplicant did not provide documents to substantiate disputes.
Key Rule Quoted
“Any doubt concerning personnel being considered for access to classified information will be resolved in favor of national security.”
Procedural Posture
- SOR issuedJan 12, 2015
- Answer filedJul 31, 2015
- Hearing heldDec 9, 2015
- Decision dateAug 15, 2016
Cite For
- Denial of Security Clearance Due to Significant Financial Issues Under Guideline F
- Failure to Demonstrate Responsible Financial Behavior
- Inability to Mitigate Financial Concerns Despite a Good Income