Summary
A 39-year-old reproduction clerk's security clearance application was denied under Guideline F (Financial Considerations) due to a history of significant financial instability. The applicant had 26 delinquent debts, including approximately $12,712 in child support arrearages, which resulted in judgments and liens. Other financial issues included a resolved delinquent car loan, a bank overdraft due to unauthorized withdrawals, and a Chapter 7 bankruptcy discharge in February 1997.
Further concerns arose from the applicant's failure to file state income tax returns for the tax years 2004 through 2007. The judge determined that these financial problems largely stemmed from voluntary decisions, such as child support obligations and breaking a lease, indicating a pattern of irresponsibility.
Despite the application of several mitigating conditions, the judge found that the applicant's ongoing financial issues and the absence of a viable plan to resolve them were not sufficiently mitigated. Consequently, the security clearance application was denied.
Why the Applicant Was Denied
- The applicant has 26 delinquent debts, indicating an inability to satisfy financial obligations.
- He failed to file state income tax returns for multiple years, raising concerns about his financial responsibility.
- The applicant's financial problems stem from voluntary decisions, including child support obligations and breaking a lease.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(e)raisedConsistent Spending Beyond One's Means
- AG ¶ 19(g)raisedFailure to File Annual Federal, State, or Local Income Tax Returns
- AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue CreditorsThe applicant is making regular payments on child-support arrearages.
- AG ¶ 20(a)rejectedBehavior Unlikely to RecurThe applicant's delinquent debts are ongoing and numerous.
- AG ¶ 20(b)rejectedConditions Beyond the Person's ControlThe applicant's financial problems are due to voluntary decisions.
- AG ¶ 20(c)rejectedReceived Counseling for the ProblemThe applicant has not sought financial counseling since his bankruptcy discharge.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the AG.”
Procedural Posture
- SOR issuedApr 6, 2010
- Answer filedApr 26, 2010
- Hearing heldJun 25, 2010
- Decision dateAug 10, 2010
Cite For
- Denial Based on Ongoing Financial Issues Under Guideline F
- Impact of Voluntary Financial Decisions on Security Clearance Eligibility
- Requirements for Demonstrating Good-faith Efforts to Resolve Debts