Summary
A 36-year-old field engineer with military service was denied a security clearance under Guideline F, Financial Considerations. The denial stemmed from significant unresolved financial issues, including approximately $43,811 in delinquent debt across multiple accounts. These included a $163 medical debt, a $11,935 personal loan charged off in September 2006, a $10,477 delinquent credit card account charged off in September 2006, a $4,105 personal loan charged off in October 2006, a $6,715 spousal support account placed for collection, and a $10,416 personal loan charged off in July 2006.
Further concerns arose from the applicant's failure to file federal income taxes since 2005, specifically for 2006 and 2007. The judge noted that the applicant's financial irresponsibility and lack of a concrete plan to address his debts raised serious questions about his reliability and trustworthiness.
Despite the application of mitigating conditions FC MC 20(b), FC MC 20(c), and FC MC 20(d), the disqualifying conditions FC DC 19(a) and FC DC 19(c) prevailed. The applicant did not provide evidence of a plan to resolve his financial issues, leading to the denial of his security clearance.
Why the Applicant Was Denied
- The applicant has approximately $43,811 in delinquent debt, including multiple charged-off accounts and spousal support arrearages.
- The applicant failed to file federal income taxes for 2006 and 2007, raising further questions about his judgment.
- The applicant did not provide evidence of a plan to resolve his financial issues despite being given the opportunity to do so.
Conditions Referenced
- FC DC 19(a)appliedInability or Unwillingness to Satisfy Debts
- FC DC 19(c)appliedA History of Not Meeting Financial Obligations
- FC MC 20(b)rejectedConditions Largely Beyond the Person's ControlWhile the applicant's marital separation contributed to his financial issues, his decision to leave a well-paying job without securing new employment was a significant factor in his financial difficulties.
- FC MC 20(c)rejectedReceived or Receiving CounselingThe applicant did not attend formal financial counseling.
- FC MC 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant's single payment towards one debt does not demonstrate a good-faith effort to resolve his financial obligations.
Key Rule Quoted
“Any doubt concerning personnel being considered for access to classified information will be resolved in favor of national security.”
Procedural Posture
- SOR issuedDec 5, 2008
- Answer filedJan 2, 2009
- Hearing heldFeb 26, 2009
- Decision dateMar 30, 2009
Cite For
- Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
- Impact of Failure to File Taxes on Security Clearance Eligibility
- Insufficient Evidence of Financial Responsibility and Planning