Summary
A 50-year-old field engineer employed by a defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to unresolved financial issues totaling over $45,000. The Statement of Reasons detailed numerous delinquent accounts, including over $19,773 in delinquent taxes, $4,584 on an educational loan, and various charged-off accounts, including vehicle loans, totaling thousands of dollars. Additionally, the applicant filed for Chapter 13 bankruptcy protection in March 2007, owed $3,085 in bankruptcy attorney fees, and failed to timely file federal income tax returns for several years.
While the applicant did pay a $480 charged-off utility bill, he failed to provide sufficient documentation for payments made towards the majority of his other debts. The decision cited Disqualifying Conditions AG ¶ 19(a), AG ¶ 19(c), and AG ¶ 19(g), which address a history of not meeting financial obligations, inability to satisfy debts, and financial problems that are not isolated.
Although Mitigating Conditions AG ¶ 20(d), AG ¶ 20(b), and AG ¶ 20(c) were considered, the clearance was denied because the applicant's financial difficulties were deemed ongoing and inadequately addressed. The lack of documentation for good-faith efforts to resolve the majority of his debts led to concerns about his reliability and trustworthiness.
Why the Applicant Was Denied
- The applicant has unresolved delinquent accounts exceeding $45,000.
- The applicant failed to provide documentation of payments made towards the majority of debts listed in the SOR.
- The applicant's financial difficulties are ongoing and have not been adequately addressed.
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 as Required
- AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant made some payments on certain debts but failed to document efforts for the majority.
- AG ¶ 20(b)rejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlWhile some circumstances were beyond the applicant's control, he has not acted responsibly to resolve his debts.
- AG ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the ProblemThe applicant has not received any financial counseling.
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 issuedMar 6, 2013
- Answer filedUndated
- Hearing heldApr 16, 2014
- Decision dateJun 6, 2014
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Impact of Financial Irresponsibility on Security Clearance Eligibility
- Requirements for Demonstrating Good-faith Efforts to Resolve Debts