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Summary

The applicant, a 60-year-old single male employed by a defense contractor, sought a security clearance under Guideline F due to significant financial issues, including multiple tax liens and debts totaling over $52,000. The judge denied the application, citing the applicant's failure to demonstrate effective management of his financial obligations and the potential risk to national security.

Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: The Applicant admits that he is indebted to his state tax authority in the amount of $1,689.00 for a tax lien filed in January 2008 (1.a). The Applicant admits that he is indebted to the Internal Revenue Service (IRS) in the amount of $1,718.00 for a tax lien filed in August 1996 (1.b). The Applicant admits that he is indebted to the IRS in the amount of $19,548.00 for a tax lien filed in January 1996 (1.c). The Applicant admits that he is indebted to the IRS in the amount of $500.00 for a tax lien filed in December 1995 (1.d). The Applicant admits that he is indebted to his state tax authority in the amount of $6,872.00 for a tax lien filed in August 1993 (1.e). The Applicant admits that he is indebted to the IRS in the amount of $21,107.00 for a tax lien filed in May 1993 (1.f). The Applicant admits that he is indebted to a collection agency for a medical bill in the amount of $422.00 (1.g). The Applicant admits that he is indebted to the same collection agency for a second medical bill in the amount of $279.00 (1.h). The Applicant admits that he owed a collection agency for an account in the amount of $152.00. In his Answer of February 4, 2009, the Applicant states that this debt was paid on December 15, 2008 (1.i). The Applicant admits that he owed a collection agency for an account in the amount of $539.00. In his Answer of February 4, 2009, the Applicant states that this debt was paid on August 15, 2008 (1.j). The Applicant admits owing a medical bill in the amount of $132.00. However, in both of his Answers, the Applicant states that he has been unable to obtain any information from the creditor about the account, including whether it is his and the amount owed (1.k).

The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(d), AG ¶ 20(a), AG ¶ 20(c). The decision turned on the following: The applicant admitted to significant financial debts totaling over $52,000, including multiple tax liens; The applicant failed to provide evidence of a clear plan to resolve his financial issues or demonstrate significant progress in debt repayment; The most recent tax lien was filed in January 2008, indicating ongoing financial instability.

Why the Applicant Was Denied

• The applicant admitted to significant financial debts totaling over $52,000, including multiple tax liens.
• The applicant failed to provide evidence of a clear plan to resolve his financial issues or demonstrate significant progress in debt repayment.
• The most recent tax lien was filed in January 2008, indicating ongoing financial instability.

Conditions Referenced

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 issuedOct 21, 2008
• Answer filedDec 12, 2008
• Hearing held—Decision made without a hearing at applicant's request.
• Decision dateJul 29, 2009

Cite For

• Financial Instability as a Disqualifying Factor Under Guideline F
• The Importance of Demonstrating a Clear Plan for Debt Resolution
• The Impact of Recent Financial Issues on Security Clearance Eligibility