Summary
The applicant, a 48-year-old man with a history of financial difficulties, faced security concerns under Guideline F due to approximately $28,000 in delinquent debt accrued between 2001 and 2008. Despite some recent efforts to address his federal tax delinquency, the applicant failed to demonstrate sufficient progress in mitigating his financial issues, leading to a denial of his security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: a $15,300 state tax lien from tax year 2001 (1.a). a delinquent electric bill for approximately $2,000 from Applicant’s residence in Puerto Rico (1.b). a delinquency owed to a cell phone company for $127 (1.c). delinquent medical bills totaling approximately $1,400 (1.d). delinquent medical bills totaling approximately $1,400 (1.e). delinquent medical bills totaling approximately $1,400 (1.f). delinquent medical bills totaling approximately $1,400 (1.g). delinquent medical bills totaling approximately $1,400 (1.h). delinquent medical bills totaling approximately $1,400 (1.i). a debt owed to an auto insurance company for $121 (1.j). an outstanding tax deficiency of approximately $8,800 (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(b), AG ¶ 20(c), AG ¶ 20(e). The decision turned on the following: The applicant accrued approximately $28,000 in delinquent debt from 2001 to 2008, with minimal progress toward resolution; The applicant admitted to falsifying his employment history on his security clearance application, undermining his credibility; The applicant has not received financial counseling and has not begun to satisfy most of his delinquencies.
Why the Applicant Was Denied
- The applicant accrued approximately $28,000 in delinquent debt from 2001 to 2008, with minimal progress toward resolution.
- The applicant admitted to falsifying his employment history on his security clearance application, undermining his credibility.
- The applicant has not received financial counseling and has not begun to satisfy most of his delinquencies.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant has made payment arrangements to resolve his federal income tax delinquency.
- AG ¶ 20(b)rejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant's falsification of his employment history undermines his claim of being unable to control his financial situation.
- AG ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the Problem And/or There Are Clear Indications That the Problem Is Being Resolved or Under ControlThe applicant has not participated in any financial counseling.
- AG ¶ 20(e)rejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant provided no documented proof to substantiate his disputes.
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 issuedMay 28, 2009
- Answer filedJun 30, 2009Applicant admitted all allegations except SOR subparagraphs 1.b and 1.c.
- Hearing heldSep 25, 2009Applicant waived his right to 15 days notice of hearing.
- Decision dateDec 10, 2009
Cite For
- Financial Considerations Under Guideline F
- Impact of Credibility on Financial Mitigation
- Requirements for Demonstrating Good-faith Efforts to Resolve Debts