Summary
A 49-year-old program manager for a federal contractor was denied a security clearance under Guideline F (Financial Considerations) due to significant financial issues, including a history of unfiled taxes and substantial debt. The judge determined that the applicant's financial problems were not under control and that he had not demonstrated responsible behavior regarding his obligations.
The Statement of Reasons detailed several allegations. The applicant had an outstanding credit card debt of $15,000, for which he began making $284 monthly payments in November 2013, intending to continue until paid, though no payment agreement documents were submitted. Another credit card debt of $5,370 was resolved through a garnishment action after being reduced to a judgment. Additionally, the applicant and his wife filed for Chapter 13 bankruptcy on April 2, 2012. A key issue was the applicant's failure to file state and federal income taxes on time for the years 2008, 2009, 2010, 2011, and 2012.
The denial was based on the applicant's failure to file required tax returns for multiple years, the accumulation of significant delinquent consumer debt without demonstrating a good-faith effort to resolve it, and the determination that his financial counseling efforts were both late and ineffective.
Why the Applicant Was Denied
- The applicant failed to file state and federal income tax returns for 2008-2012 as required by law.
- The applicant accumulated significant delinquent consumer debt and did not demonstrate a good-faith effort to resolve it.
- The applicant's financial counseling efforts were deemed late and ineffective.
Conditions Referenced
- F.1.araisedInability or Unwillingness to Satisfy Debts
- F.1.craisedA History of Not Meeting Financial Obligations
- F.1.graisedFailure to File Annual Federal, State, or Local Income Tax Returns as Required
- F.2.arejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- F.2.brejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- F.2.crejectedThe Person Has Received or Is Receiving Counseling for the Problem
- F.2.drejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- F.2.erejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt
- F.2.frejectedThe Affluence Resulted From a Legal Source of Income
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedJul 18, 2013
- Answer filedSep 2, 2013
- Hearing heldDec 23, 2013Originally scheduled for 10/21/2013
- Decision dateFeb 14, 2014
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Failure to File Taxes as a Disqualifying Condition
- Ineffective Financial Counseling Efforts as a Basis for Denial.