Summary
A 38-year-old test support specialist, employed by a Department of Defense contractor, was denied a security clearance under Guideline F, Financial Considerations. The denial stemmed from significant unresolved financial issues, including 37 delinquent accounts totaling approximately $25,328, and an outstanding $17,000 tax debt owed to the IRS.
The Statement of Reasons detailed numerous collection accounts, judgments, and charged-off debts. These included a $12,220 debt from a repossessed truck, a $1,458 delinquent credit card account, and two judgments for $425 and $918. The remaining 33 allegations primarily involved various medical, utility, and returned check accounts, ranging from $33 to $1,433, with collection dates spanning from 2001 to 2008.
The judge found that the applicant's financial difficulties, which he attributed primarily to a divorce and medical issues, raised concerns about his reliability and judgment. Despite some mitigating conditions being considered, the applicant failed to demonstrate sufficient efforts to resolve these substantial debts, leading to the denial of his security clearance.
Why the Applicant Was Denied
- The applicant has 37 delinquent accounts totaling approximately $25,328, indicating a lack of financial responsibility.
- The applicant owes approximately $17,000 in back taxes to the IRS, which remains unresolved.
- The applicant's financial issues raise questions about his reliability and good judgment.
Conditions Referenced
- FC DC 19(a)appliedInability or Unwillingness to Satisfy Debts
- FC DC 19(c)appliedHistory of Not Meeting Financial Obligations
- FC MC 20(b)rejectedConditions Largely Beyond the Person's ControlWhile the applicant's divorce contributed to his financial issues, it does not explain all delinquent accounts.
- FC MC 20(c)rejectedReceiving Counseling for the ProblemThe applicant consulted credit counseling but did not enter a repayment plan.
- FC MC 20(d)appliedGood-faith Effort to Repay Overdue CreditorsThe applicant made some payments on smaller debts, but many remain unresolved.
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 issuedJan 27, 2009
- Answer filedMar 2, 2009
- Hearing heldJul 15, 2009
- Decision dateAug 24, 2009
Cite For
- Financial Responsibility Under Guideline F
- Impact of Unresolved Debts on Security Clearance Eligibility
- Consideration of Personal Circumstances in Financial Issues