Summary
A 43-year-old single male applicant was denied a security clearance under Guideline F (Financial Considerations) due to significant financial issues. The Statement of Reasons detailed multiple unpaid debts and a history of failing to file tax returns.
Specifically, the applicant had nine delinquent debts totaling approximately $60,380 that remained unresolved as of the Statement of Reasons. These included credit card debts ranging from $5,496 to $11,123, a $202 medical bill, a $24,006 loan cosigned for a friend, and approximately $4,000 in unpaid property taxes. While one credit card debt of $11,123 was settled for $5,423 on April 5, 2012, and payments of $150 per month were being made on another $4,633 credit card debt, the majority of the debts were still outstanding.
Additionally, the applicant failed to file his 2011 federal income tax return and state income tax returns from 1994 to 2009, as well as for 2011. He also owed $549 for delinquent 2010 federal income taxes. The judge found that the applicant's financial problems were largely due to his own irresponsible conduct, including using a credit card cash advance to purchase a home, and that he failed to mitigate these concerns, leading to the denial of his security clearance.
Why the Applicant Was Denied
- Applicant has nine delinquent debts totaling approximately $60,380 that are unresolved.
- Applicant failed to file his federal income tax return for 2011 and state income tax returns from 1994 through 2009 and 2011.
- Applicant's financial problems were largely due to his own irresponsible conduct, including using a credit card cash advance to purchase a home.
Conditions Referenced
- F.19(a)raisedInability or Unwillingness to Satisfy Debts
- F.19(c)raisedA History of Not Meeting Financial Obligations
- F.19(g)raisedFailure to File Annual Federal, State, or Local Income Tax Returns as Required
- F.20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurApplicant's conduct was frequent and casts doubt on his reliability.
- F.20(b)rejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe financial problems were consequences of the applicant's own irresponsible conduct.
- F.20(c)rejectedThe Person Has Received or Is Receiving Counseling for the ProblemApplicant has not received financial counseling.
- F.20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsApplicant settled one credit card debt and is making payments on another, but the majority of debts remain unresolved.
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 issuedFeb 23, 2012
- Answer filedMar 24, 2012
- Hearing heldJun 27, 2012
- Decision dateJul 27, 2012
Cite For
- Failure to Mitigate Financial Concerns Under Guideline F
- Impact of Unresolved Debts on Security Clearance Eligibility
- Importance of Filing Tax Returns for Security Clearance Applicants