Summary
A 51-year-old senior computer operator for a Department of Defense contractor was denied renewal of his security clearance under Guideline F (Financial Considerations) due to significant and unresolved financial issues. The Statement of Reasons detailed three federal tax liens from 1994, 1996, and 2007, totaling approximately $43,999. Additionally, the applicant had four charged-off credit card accounts totaling $59,125, a charged-off department store account, and a charged-off telephone account.
Further allegations included several delinquent accounts as of May 2009, such as an electric utility bill, a hospital bill, a gas bill, a doctor bill, and a monthly car loan payment. The judge applied Disqualifying Conditions 19(a) and 19(c) and considered Mitigating Conditions 20(b) and 20(d).
Ultimately, the clearance was denied because the applicant had substantial unresolved federal tax and credit card debts. He failed to present a responsible plan to resolve these financial issues, including not having filed for bankruptcy despite stated intentions. The judge concluded that the applicant's financial history raised unmitigated concerns about his reliability, trustworthiness, and good judgment.
Why the Applicant Was Denied
- The applicant has unresolved federal tax debts totaling approximately $43,999 and charged off credit card accounts totaling $59,125.
- The applicant failed to demonstrate a responsible plan to resolve his financial issues, including not having filed for bankruptcy despite intentions to do so.
- The applicant's financial history raised questions about his reliability, trustworthiness, and good judgment.
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)appliedConditions Largely Beyond the Person's ControlThe applicant's financial problems were partially attributed to excessive child support payments and health issues.
- FC MC 20(d)appliedGood-faith Effort to Repay CreditorsThe applicant is in the early stages of preparing to file for bankruptcy.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedJun 30, 2009
- Answer filedAug 20, 2009
- Hearing heldDec 2, 2009Applicant requested a delay until January 2010, which was denied.
- Decision dateFeb 17, 2010
Cite For
- Insufficient Evidence to Mitigate Financial Concerns Under Guideline F
- Impact of Unresolved Federal Tax Debts on Security Clearance Eligibility
- Importance of Demonstrating a Responsible Financial Plan in Security Clearance Cases