Summary
A 52-year-old defense contractor employee was denied a public trust position due to financial trustworthiness concerns under Guideline F. The applicant had a history of delinquent debts and unpaid taxes dating back to 2006.
Specific allegations included an unresolved $539 debt to a satellite television company, a $76 debt for a returned check, a $454 unpaid credit card balance, and a $190 medical account debt where the creditor could not be located. A $3,082 credit card judgment was being paid via garnishment, with a $63 balance as of May 20, 2013. A $355 gas company debt had a $180 balance after a $175 payment on June 3, 2013. A $234 debt was paid on June 3, 2013. A $27,136 past-due mortgage debt on a $103,000 loan was resolved through a January 2010 foreclosure, with the house selling for $135,000. Additionally, the applicant had been paying $200 monthly for 20 months towards unpaid 2006 state taxes.
Despite some efforts to resolve debts, the judge found the applicant failed to demonstrate sufficient financial responsibility. The denial was based on the accumulation of delinquent debts since 2006, including unpaid taxes, and the applicant's inability to prove that financial problems were unlikely to continue or recur. The applicant also did not provide evidence of financial counseling or a sufficient track record of responsible financial management.
Why the Applicant Was Denied
- The applicant has accumulated delinquent debts since 2006, including unpaid Federal and state taxes.
- The applicant failed to demonstrate that his financial problems are unlikely to continue or recur.
- The applicant did not provide proof of financial counseling or a sufficient track record of responsible financial management.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions Largely Beyond the Person's ControlThe applicant presented evidence that some financial problems were due to loss of a business contract and personal issues.
- AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue CreditorsThe applicant resolved several debts and demonstrated efforts to address some financial obligations.
- AG ¶ 20(c)rejectedReceived Counseling for the ProblemThe applicant did not provide proof of financial counseling.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedJan 15, 2013
- Answer filed—
- Hearing heldMay 21, 2013
- Decision dateJun 27, 2013
Cite For
- Trustworthiness Concerns Related to Financial Problems Under Guideline F
- The Impact of Unresolved Tax Liabilities on Security Clearance Eligibility
- The Importance of Demonstrating Responsible Financial Management for Public Trust Positions