Summary
A 47-year-old information technology director, employed by a Department of Defense contractor, was denied a security clearance under Guideline F (Financial Considerations). The denial stemmed from approximately $29,000 in unresolved delinquent debts and a failure to timely file federal income tax returns for multiple years.
The Statement of Reasons detailed sixteen specific debts, including charged-off debts for a repossessed motorcycle ($8,506) and a bank debt ($7,540), along with various student loans, medical debts, and telecommunications debts, all placed for collection. Additionally, the applicant failed to timely file federal income tax returns and owed delinquent taxes for tax years 2009 through 2013.
The judge found that the applicant did not demonstrate sufficient progress in resolving these financial issues and failed to provide corroborating documentation for claimed resolutions. This lack of progress and non-compliance with governmental rules, particularly regarding tax filings, raised concerns about the applicant's reliability and trustworthiness, leading to the denial of the security clearance.
Why the Applicant Was Denied
- The applicant did not demonstrate sufficient progress in resolving his delinquent debts.
- The applicant failed to provide corroborating documentation to support his claims of financial resolution.
- The applicant's failure to timely file federal income tax returns indicated a lack of compliance with governmental rules.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(f)raisedFailure to File or Fraudulently Filing Annual Federal, State, or Local Income Tax Returns or Failure to Pay Annual Federal, State, or Local Income Tax as Required
- AG ¶ 20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur and Does Not Cast Doubt on the Individual’s Current Reliability, Trustworthiness, or Good JudgmentThe applicant's debts were recent and unresolved.
- AG ¶ 20(b)rejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant did not provide sufficient evidence that his financial issues were beyond his control.
- AG ¶ 20(c)rejectedThe Individual Has Received or Is Receiving Financial Counseling for the Problem From a Legitimate and Credible SourceThe applicant did not provide evidence of financial counseling.
- AG ¶ 20(d)rejectedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant's efforts to resolve debts were not documented or substantiated.
- AG ¶ 20(g)rejectedThe Individual Has Made Arrangements with the Appropriate Tax Authority to File or Pay the Amount Owed and Is in Compliance with Those ArrangementsThe applicant did not demonstrate compliance with tax obligations.
Key Rule Quoted
“Failure 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 or sensitive information.”
Procedural Posture
- SOR issuedDec 10, 2015
- Answer filedMar 1, 2016
- Hearing held—Applicant appeared pro se.
- Decision dateApr 12, 2018
Cite For
- Insufficient Evidence of Financial Resolution Under Guideline F
- Impact of Failure to File Tax Returns on Security Clearance Eligibility
- Criteria for Evaluating Financial Considerations in Security Clearance Cases