Summary
A 54-year-old software developer, employed by a defense contractor, was denied a security clearance due to significant financial concerns under Guideline F. The applicant had accumulated approximately $117,904 in delinquent debts, including about $73,000 in unpaid federal income taxes.
Specific allegations included an unresolved medical debt, which had increased from $5,689 to $12,409 despite a payment agreement. Another credit card debt, initially $6,585, had grown to $9,127, indicating it was not being resolved despite ongoing payments. While one $8,496 credit card debt was settled and paid in October 2012, the applicant failed to provide sufficient evidence of resolution for the remaining debts or documentation of payments.
The denial was based on the substantial delinquent debts and the applicant's failure to demonstrate reliability in managing his financial obligations. He did not participate in credit or financial counseling, nor did he provide adequate documentation verifying payments on his outstanding debts.
Why the Applicant Was Denied
- The applicant accumulated substantial delinquent debts totaling $117,904, including unpaid federal income taxes.
- He failed to provide sufficient evidence to document the resolution of his debts or demonstrate reliability in addressing his financial obligations.
- The applicant did not participate in credit or financial counseling, nor did he provide documentation verifying payments on his debts.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(d)raisedDeceptive or Illegal Financial Practices
- AG ¶ 19(g)raisedFailure to File Annual Federal, State, or Local Income Tax Returns
- AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue CreditorsThe applicant provided proof of a good-faith effort to pay one delinquent debt.
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 23, 2012
- Answer filedJan 23, 2013Applicant requested a decision on the written record without a hearing.
- Hearing held—No hearing was held.
- Decision dateMay 13, 2013
Cite For
- Denial Based on Substantial Delinquent Debts Under Guideline F
- Failure to Demonstrate Resolution of Financial Obligations
- Lack of Evidence for Financial Reliability and Good Judgment