Summary
The applicant, a 52-year-old network engineer, faced security clearance denial under Guideline F due to financial considerations, including numerous delinquent debts and failure to file tax returns. Despite demonstrating good character and work performance, the applicant's financial irresponsibility raised concerns about his reliability and trustworthiness.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: credit card ($5,715) (1.c). medical ($778) (1.d). cell phone service ($385) (1.e). cable service ($697) (1.f). cell phone service ($188) (1.g). medical ($155) (1.h). cell phone ($196) (1.i). medical ($449) (1.j). medical ($155) (1.k).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c), AG ¶ 19(g). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), AG ¶ 20(e). The decision turned on the following: Applicant has numerous unresolved delinquent debts and a history of not meeting financial obligations; Applicant failed to timely file federal and state income tax returns for multiple years, including 2008, which remains unfiled after five years; Applicant did not provide sufficient evidence to demonstrate a good-faith effort to resolve his debts.
Why the Applicant Was Denied
- Applicant has numerous unresolved delinquent debts and a history of not meeting financial obligations.
- Applicant failed to timely file federal and state income tax returns for multiple years, including 2008, which remains unfiled after five years.
- Applicant did not provide sufficient evidence to demonstrate a good-faith effort to resolve his debts.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 19(g)appliedFailure to File Annual Federal, State, or Local Income Tax Returns as Required
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurApplicant's delinquent debts are numerous and recent.
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlWhile some conditions were beyond his control, he did not act responsibly to resolve his debts.
- AG ¶ 20(c)rejectedReceived Counseling for the Problem And/or Clear Indications That the Problem Is Being ResolvedApplicant has not sought or received financial counseling.
- AG ¶ 20(d)rejectedInitiated a Good-faith Effort to Repay Overdue Creditors or Resolve DebtsThere is no evidence of good faith in addressing the debts.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute the Legitimacy of the Past-due DebtApplicant did not dispute the debts with creditors or collection agencies.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the AG.”
Procedural Posture
- SOR issuedJul 23, 2014
- Answer filedAug 23, 2014
- Hearing heldNov 20, 2014
- Decision dateJan 15, 2015
Cite For
- Denial of Security Clearance Due to Financial Irresponsibility Under Guideline F
- Failure to File Tax Returns as a Disqualifying Condition
- Lack of Good-faith Efforts to Resolve Debts as a Basis for Denial Under Guideline F