Summary
A 32-year-old defense contractor employee was denied a security clearance under Guideline F, Financial Considerations, due to a history of significant financial issues. These included delinquent debts totaling nearly $8,000, a vehicle repossession in 2007, and a home foreclosure in 2008. The applicant also failed to file federal income tax returns for 2010 and 2011, and had not made payments on any of his delinquent accounts, some dating back to 2005.
While the applicant attributed his financial problems to unemployment and underemployment beginning around 2008, the decision noted that some accounts became delinquent even when he was employed full-time. He had recently decided to pursue bankruptcy and was saving the required $1,800 attorney's fee, having accumulated $600.
Ultimately, the judge found insufficient evidence of responsible financial management or concrete efforts to resolve the long-term, ongoing debts. The failure to file tax returns demonstrated a disregard for financial responsibilities, and there was no indication of financial counseling or a likely shift to a financially responsible lifestyle. Therefore, granting a clearance was deemed inconsistent with national interest.
Why the Applicant Was Denied
- Applicant has numerous unpaid delinquent debts totaling almost $8,000.
- Applicant lost his house through foreclosure and had a vehicle repossessed.
- Applicant failed to file federal income tax returns for 2010 and 2011, showing disregard for financial responsibilities.
Conditions Referenced
- DC 19(a)raisedInability or Unwillingness to Satisfy Debts
- DC 19(c)raisedA History of Not Meeting Financial Obligations
- MC 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- MC 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to Recur
- MC 20(c)rejectedReceived or Is Receiving Counseling for the Problem
- MC 20(d)rejectedInitiated a Good-faith Effort to Repay Overdue Creditors
Key Rule Quoted
“The sole purpose of a security clearance decision is to decide if it is clearly consistent with the national interest to grant or continue a security clearance for an applicant.”
Procedural Posture
- SOR issuedApr 13, 2012
- Answer filedMay 9, 2012
- Hearing heldAug 22, 2012
- Decision dateSep 21, 2012
Cite For
- Financial Irresponsibility Under Guideline F
- Impact of Unresolved Delinquent Debts on Security Clearance
- Consideration of Mitigating Conditions Related to Financial Issues