Summary
The applicant, a 60-year-old senior software engineer, faced security clearance denial under Guideline F due to significant unresolved financial issues, including 11 delinquent debts totaling over $51,000 and multiple unpaid tax liens. The judge found that the applicant's lack of financial responsibility and failure to take action to resolve these debts raised serious concerns about his reliability and trustworthiness.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant owes a state $6,096, $10,007, $8,703, and $5,854 on four separate tax liens for the 1986, 1988 and 1989 tax years. He owes another state $2,687 on a different tax lien for the 1992 and 1993 tax years. All five tax liens remain unpaid (1.a). A natural gas utility is owed $402 on a bill. This bill remains unpaid (1.d). Applicant owes a car maker $8,880 on a judgment. This debt remains unpaid (1.e). Applicant owes a credit card provider $1,332. This debt remains unpaid (1.f). A telephone company placed Applicant’s account for collection, seeking $2,240. This debt remains unpaid (1.g). Applicant owes another credit card company $3,553. This debt also remains unpaid (1.h). Applicant owes a bank $1,261 on an account. This debt is unpaid (1.i). Applicant’s home was foreclosed in August 2006. Applicant has not paid the balance due on this mortgage (1.j). Applicant filed Chapter 7 bankruptcy on November 13, 1995. He was discharged of his debts in bankruptcy on February 14, 1996. The delinquent debts alleged in the SOR in the previous paragraphs occurred after the bankruptcy discharge (1.m). Applicant was ordered to pay his former wife $3,000 monthly in alimony from 2006 until 2008. He did so, and after the legal obligation to pay expired, he continued to pay her $2,000 monthly to help her. He estimates he has paid her about $100,000 in the past three years (1.n).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(b), AG ¶ 19(c), AG ¶ 19(g). The decision turned on the following: The applicant failed to demonstrate financial responsibility by not repaying or resolving any of his delinquent debts; He placed the burden of debt repayment on his former wife without taking any action to rectify the situation himself; The applicant's history of financial irresponsibility and lack of engagement with his financial obligations raised significant security concerns.
Why the Applicant Was Denied
- The applicant failed to demonstrate financial responsibility by not repaying or resolving any of his delinquent debts.
- He placed the burden of debt repayment on his former wife without taking any action to rectify the situation himself.
- The applicant's history of financial irresponsibility and lack of engagement with his financial obligations raised significant security concerns.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(b)raisedIrresponsible Spending
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 19(g)raisedFailure to Resolve Tax Liens
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedNov 26, 2008
- Answer filedJan 12, 2009
- Hearing heldMay 12, 2009
- Decision dateJun 23, 2009
Cite For
- Failure to Resolve Significant Financial Obligations Under Guideline F
- Impact of Financial Irresponsibility on Security Clearance Eligibility
- Importance of Personal Responsibility in Financial Matters for Security Clearance Decisions.