Summary
The applicant, a 30-year-old defense contractor and former military service member, faced security clearance denial under Guideline F due to significant delinquent debts totaling approximately $19,000 and failure to file federal and state tax returns for 2007 and 2008. Despite some efforts to resolve debts, the judge found insufficient evidence of responsible financial management and a lack of a demonstrated track record of debt repayment.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: The debt alleged in SOR ¶ 1.a for a cell phone account in the amount of $1,259 is unpaid (1.a). The debt alleged in SOR ¶ 1.b for another phone account in the amount of $1,405 is unpaid (1.b). The debt alleged in SOR ¶ 1.c for a credit card account in the amount of $801 was settled for $250 (1.c). The debt alleged in SOR ¶ 1.d for an automobile repossession in the amount of $14,356 is unpaid (1.d). The debt alleged in SOR ¶ 1.e is for a medical account in the amount of $204 and is disputed (1.e). The debt alleged in SOR ¶ 1.f for a charged-off account in the amount of $330 is unpaid (1.f). The debt alleged in SOR ¶ 1.g for a utility bill in collection in the amount of $113 is unpaid (1.g). The debt alleged in SOR ¶ 1.h is for a mobile cell phone in the amount of $1,212. This debt is unpaid (1.h). The debt alleged in SOR ¶ 1.i is for a collection account in the amount of $422. This debt is unpaid (1.i). The debt alleged in SOR ¶ 1.j is for a collection account in the amount of $1,353. This debt is paid (1.j). The debt alleged in SOR ¶ 1.k alleged Applicant failed to file taxes for 2007 and 2008 (1.k).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c), AG ¶ 19(g). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(d), AG ¶ 20(e). The decision turned on the following: Applicant admitted to approximately $19,000 in delinquent debt; Applicant failed to file federal and state tax returns for 2007 and 2008; Applicant did not demonstrate a consistent effort to resolve his financial issues until 2010.
Why the Applicant Was Denied
- Applicant admitted to approximately $19,000 in delinquent debt.
- Applicant failed to file federal and state tax returns for 2007 and 2008.
- Applicant did not demonstrate a consistent effort to resolve his financial issues until 2010.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 19(g)raisedFailure to File Annual Federal, State, or Local Income Tax Returns
- AG ¶ 20(b)appliedConditions Largely Beyond the Person's ControlApplicant's marital separation impacted his decision to file taxes.
- AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue CreditorsApplicant has been steadily employed since 2008 and paid two delinquent debts.
- AG ¶ 20(e)appliedDispute of Legitimacy of Past-due DebtApplicant provided documentation disputing some debts.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedMar 24, 2010
- Answer filedMay 13, 2010Notarized response admitting to most allegations.
- Hearing held—
- Decision dateSep 14, 2010
Cite For
- Denial Based on Significant Delinquent Debts Under Guideline F
- Failure to File Tax Returns as a Disqualifying Condition
- Insufficient Evidence of Responsible Financial Management and Repayment Efforts