Summary
The applicant, a 42-year-old defense contractor with a history of financial difficulties, faced security concerns under Guideline F due to multiple delinquent debts totaling over $57,000, including unresolved tax obligations and student loans. Despite some efforts to address his financial issues, the judge found insufficient evidence of rehabilitation or a reasonable plan to resolve the debts, leading to a denial of his security clearance application.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant has a Chapter 7 bankruptcy filed in May 2013 to discharge $111,989.83 of debts (1.a). Applicant has 15 Federal student loans unpaid totaling $46,124 (1.b). Applicant owes a gas utility for a November 2015 bill of $106 (1.c). Applicant owes an apartment manager for a delinquent account in the amount of $2,498 from 2013 (1.d). Applicant owes Federal income taxes to the Internal Revenue Service (IRS) for the tax years 2013 and 2014 (1.e). Applicant owes a gas utility for a November 2015 bill of $106 (1.q). Applicant owes an apartment manager for a delinquent account in the amount of $2,498 from 2013 (1.r). Applicant submitted exhibits showing his 2013 tax debt is paid (1.s). Applicant owes Federal income taxes to the Internal Revenue Service (IRS) for the tax years 2013 and 2014 (1.t). Applicant repaid the $750 owed for his misuse of his employer’s corporate travel card (1.u). He had a lien on his house for $22,000 in retroactive unpaid child support (1.v).
The judge denied the clearance. The government raised disqualifying conditions F.1.a, F.1.c, F.1.g. The decision turned on the following: The applicant has 20 delinquent debts totaling $57,178, including unresolved tax debts and student loans; The applicant's financial issues have persisted for several years, and he has not made substantial changes to his financial management; The applicant's failure to file and pay income taxes raises security concerns about his reliability and trustworthiness.
Why the Applicant Was Denied
- The applicant has 20 delinquent debts totaling $57,178, including unresolved tax debts and student loans.
- The applicant's financial issues have persisted for several years, and he has not made substantial changes to his financial management.
- The applicant's failure to file and pay income taxes raises security concerns about his reliability and trustworthiness.
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
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 issuedJun 13, 2016
- Answer filedJul 13, 2016
- Hearing heldFeb 21, 2017
- Decision dateMay 31, 2017
Cite For
- Denial Based on Unresolved Financial Obligations Under Guideline F
- Insufficient Evidence of Rehabilitation in Financial Matters
- Impact of Financial Mismanagement on Security Clearance Eligibility