Summary
A 51-year-old retired Army sergeant first class was denied a security clearance under Guideline F, Financial Considerations, due to significant and ongoing financial issues. The Statement of Reasons detailed multiple outstanding debts, including a $2,500 attorney fee judgment, a federal tax lien for $123,805, a $48 charged-off telephone debt, an $18,291 car repossession debt, a $527 charged-off credit card debt, and an $863 utility debt in collection.
Further financial concerns included a Chapter 13 bankruptcy filed in July 2002 and discharged in June 2007, followed by another Chapter 13 bankruptcy filed in August 2008 but dismissed in October 2008. The applicant also failed to file state and federal tax returns for 2009 and 2010 and owed approximately $7,400 in delinquent Georgia state taxes for 2005, 2006, and 2007.
Despite a history of honorable service, the applicant did not provide sufficient information to mitigate the security concerns. The denial was based on a history of significant delinquent debts, including the federal tax lien and unfiled tax returns, which were attributed to poor financial management rather than circumstances beyond his control.
Why the Applicant Was Denied
- The applicant did not present sufficient information to mitigate security concerns for financial considerations.
- The applicant has a history of significant delinquent debts, including a federal tax lien and failure to file tax returns for multiple years.
- The applicant's financial problems were not solely due to circumstances beyond his control, as they stemmed from poor financial management.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(g)raisedFailure to File Annual Federal, State, or Local Income Tax Returns as Required
- AG ¶ 20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurThe applicant's financial issues are ongoing and not resolved.
- AG ¶ 20(b)rejectedThe Conditions That Resulted in the Financial Problems Were Largely Beyond the Person’s ControlThe applicant's financial issues were due to poor management rather than uncontrollable circumstances.
- AG ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the ProblemThe applicant did not present evidence of financial counseling.
- AG ¶ 20(d)rejectedThe Individual Has Initiated a Good-faith Effort to Repay the Overdue Creditors or Otherwise Resolve DebtsThe applicant has not shown a meaningful track record of debt repayment.
- AG ¶ 20(e)rejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant has not taken sufficient action to resolve disputed debts.
Key Rule Quoted
“A person who seeks access to classified information enters into a fiduciary relationship with the Government predicated upon trust and confidence.”
Procedural Posture
- SOR issuedNov 24, 2010
- Answer filedDec 15, 2010
- Hearing heldMay 5, 2011Applicant waived the 15 days notice requirement.
- Decision date—
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations Under Guideline F
- Impact of Financial Mismanagement on Security Clearance Eligibility
- Importance of Demonstrating Responsible Financial Behavior for Security Clearance Applicants