Summary
The applicant, a 48-year-old defense contractor and retired Army veteran, faced security clearance denial under Guideline F due to unresolved financial issues, including multiple delinquencies and a tax lien. Despite a commendable military record and positive character references, the applicant failed to demonstrate sufficient financial responsibility or mitigation of the concerns raised.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Owes a tax lien in the amount of $1,297 (1.a). Owes $255 for cable television services (1.b). Owes $52 for unspecified purposes (1.c). Owes $62 for medical services provided in 2004 (1.d). Owes $314 for medical services provided in 2004 (1.e). Owes $113 for telephone service (1.f). Owes $4,000 for an automobile lease that was repossessed (1.g). Owes $2,131 for a credit card account (1.h). Owes $51 for unspecified purposes (1.i). Owes $236 for telephone service (1.j). Owes $7,000 for a credit card account (1.k).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The decision turned on the following: The applicant failed to contact creditors regarding delinquencies and did not provide evidence of disputing debts; The applicant's financial difficulties were longstanding and unresolved, indicating a lack of financial responsibility; The applicant did not seek formal financial counseling or demonstrate a proactive approach to managing debts.
Why the Applicant Was Denied
- The applicant failed to contact creditors regarding delinquencies and did not provide evidence of disputing debts.
- The applicant's financial difficulties were longstanding and unresolved, indicating a lack of financial responsibility.
- The applicant did not seek formal financial counseling or demonstrate a proactive approach to managing debts.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
Key Rule Quoted
“Failure or inability to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness and ability to protect classified information.”
Procedural Posture
- SOR issuedNov 9, 2010
- Answer filedNov 17, 2010
- Hearing heldMar 22, 2011
- Decision dateMay 10, 2011
Cite For
- Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
- Failure to Demonstrate Financial Responsibility as a Basis for Security Clearance Denial
- Impact of Financial Delinquencies on Security Clearance Eligibility