Summary
A 45-year-old security officer's application for a security clearance was denied under Guideline F (Financial Considerations) due to a history of delinquent debts and failures to file tax returns. The Statement of Reasons detailed nineteen specific financial allegations, including multiple judgments for unpaid rent, several state tax liens, various collection accounts for utilities, cable, cell phone, and satellite TV, credit card debts, towing charges, parking fines, and a library fine. Additionally, the applicant failed to file federal income tax returns.
Disqualifying conditions cited included a history of not meeting financial obligations, an inability or unwillingness to satisfy debts, and a pattern of financial irresponsibility. While several mitigating conditions were considered, such as the debt being caused by circumstances beyond the applicant's control, the applicant having initiated a good-faith effort to resolve the debt, and the debt being isolated or not recent, these were ultimately insufficient.
The denial was based on the applicant's recent and frequent financial issues, which indicated a lack of control over financial responsibilities. Despite initiating a debt management plan, the applicant had not established a sufficient track record of financial responsibility.
Why the Applicant Was Denied
- The applicant has a history of delinquent debts and failures to file federal and state income tax returns.
- The applicant's financial issues are recent and frequent, indicating a lack of control over his financial responsibilities.
- The applicant has not established a track record of financial responsibility despite initiating a debt management plan.
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
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurThe applicant's financial issues are recent and frequent.
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlThe applicant's financial problems were primarily due to neglect of responsibilities.
- AG ¶ 20(c)rejectedReceived Counseling for the Problem And/or There Are Clear Indications That the Problem Is Being Resolved or Is Under ControlThe applicant has not established a track record of financial responsibility.
- AG ¶ 20(d)appliedInitiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant demonstrated a good-faith effort to resolve his federal income tax debt.
- AG ¶ 20(e)rejectedHas a Reasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant did not dispute any of the debts.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the AG.”
Procedural Posture
- SOR issuedDec 7, 2010
- Answer filedJan 13, 2011Undated document
- Hearing heldMar 10, 2011
- Decision dateMay 19, 2011
Cite For
- Denial Based on Financial Irresponsibility Under Guideline F
- Insufficient Evidence of Financial Rehabilitation
- Impact of Recent Financial Issues on Security Clearance Eligibility