Summary
A 44-year-old information technology support coordinator was denied a security clearance under Guideline F (Financial Considerations) due to significant financial issues. The Statement of Reasons detailed six delinquent debts totaling approximately $5,259, including a $1,350 disputed medical debt, a $596 disputed medical debt, a $1,788 credit card debt charged off due to hardship, and a $668 account placed in collection. Additionally, a 2009 collection account stemmed from an insufficient funds check.
A primary concern was the applicant's failure to file federal income tax returns from 2003 to 2006 and state income tax returns from 2003 to 2009. The judge identified several disqualifying conditions, including a history of not meeting financial obligations, an inability to satisfy debts, and a pattern of financial irresponsibility.
Despite the consideration of various mitigating conditions, the application was denied. The judge concluded that the applicant failed to provide sufficient evidence of efforts to resolve the delinquent debts and did not demonstrate financial responsibility or good judgment regarding her financial obligations. Consequently, the applicant's financial problems were deemed unaddressed and ongoing.
Why the Applicant Was Denied
- The applicant failed to provide evidence of efforts to resolve delinquent debts.
- The applicant did not demonstrate financial responsibility or good judgment regarding her financial obligations.
- The applicant's financial problems remain unaddressed and ongoing.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(b)raisedUnwillingness to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 19(f)raisedFailure to File Income Tax Returns
- AG ¶ 20(b)appliedConditions Beyond the Person's ControlThe applicant's unemployment and loss of household income were conditions beyond her control.
- AG ¶ 20(a)rejectedBehavior Unlikely to RecurThe applicant's delinquent debts are recent and unresolved.
- AG ¶ 20(c)rejectedFinancial Counseling ReceivedNo evidence of financial counseling was provided.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsThe applicant did not demonstrate good-faith efforts to resolve her debts.
- AG ¶ 20(e)rejectedDisputed DebtsThe applicant did not provide evidence to substantiate her disputes regarding debts.
- AG ¶ 20(g)rejectedArrangements with Tax AuthorityThe applicant did not provide evidence of arrangements with tax authorities regarding her tax filings.
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 issuedSep 26, 2016
- Answer filedDec 1, 2016Applicant elected to have the case decided on the written record.
- Hearing held—No hearing; case decided on written record.
- Decision dateOct 11, 2017
Cite For
- Insufficient Evidence of Financial Responsibility Under Guideline F
- Ongoing Financial Obligations as a Disqualifying Factor
- Lack of Documentary Evidence to Support Claims of Hardship or Debt Resolution