Summary
The applicant, a 45-year-old male employed by a Department of Defense contractor, faced security clearance denial under Guideline F due to a history of financial problems, including multiple tax liens and unresolved debts. Despite some efforts to make payments and seek credit counseling, the judge found insufficient evidence of a good-faith effort to resolve the majority of his financial obligations, leading to concerns about his reliability and trustworthiness.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: a $7,327 state tax lien entered against Applicant in July 2009 (1.b). a $2,546 state tax lien entered against Applicant in 2001 (1.c). a $22,872 federal tax lien entered against Applicant in 2001 (1.d). a $17,882 state tax lien entered against Applicant in 2001 (1.e). two cable television accounts, $68 and $120, placed for collection (1.f). five medical accounts placed for collection, the amounts $174, $50, $108, $220, and $102 (1.g). a $227 utility account placed for collection (1.i). a $375 charged off credit card account (1.l).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(d), AG ¶ 20(e). The decision turned on the following: The applicant has a history of financial problems dating back to the 1990s, including a Chapter 7 bankruptcy and multiple unresolved tax liens; He failed to demonstrate a good-faith effort to resolve his delinquent accounts, with most debts remaining unpaid despite being employed since November 2009; The applicant's financial irresponsibility raises questions about his reliability and trustworthiness in handling classified information.
Why the Applicant Was Denied
- The applicant has a history of financial problems dating back to the 1990s, including a Chapter 7 bankruptcy and multiple unresolved tax liens.
- He failed to demonstrate a good-faith effort to resolve his delinquent accounts, with most debts remaining unpaid despite being employed since November 2009.
- The applicant's financial irresponsibility raises questions about his reliability and trustworthiness in handling classified information.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlThe applicant's financial issues were partially caused by personal circumstances such as divorce and periods of unemployment.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsWhile the applicant made some payments, he did not provide sufficient evidence that debts were resolved or that he made a proactive effort to address all delinquent accounts.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant disputed some medical debts, but did not provide sufficient evidence to substantiate these disputes.
Key Rule Quoted
“An applicant is not required to be debt free, but is required to manage his finances in such a way as to meet his financial obligations.”
Procedural Posture
- SOR issuedOct 13, 2010
- Answer filedNov 16, 2010
- Hearing heldFeb 9, 2011
- Decision dateMar 28, 2011
Cite For
- History of Financial Irresponsibility Under Guideline F
- Insufficient Evidence of Good-faith Efforts to Resolve Debts
- Impact of Personal Circumstances on Financial Obligations