Summary
The applicant, a 39-year-old brush painter employed by a DoD contractor, faced security clearance denial under Guideline F due to significant financial issues, including bankruptcy and failure to file tax returns. The judge found that the applicant's financial difficulties were largely self-inflicted and not adequately addressed, leading to a conclusion that the applicant did not mitigate the security concerns.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant filed a Chapter 7 bankruptcy on or about July 2005, and her debts were discharged on or about November 2005 (1.a). Applicant failed to file Federal tax returns for tax years 2011 and 2012 (1.b). This overdue debt is cited in the SOR for a tax lien to the Federal Government, entered in 2012, in the approximate amount of $16,604 (1.c). This overdue debt is cited in the SOR for a collection account in the amount of $547 (1.d). This overdue debt is cited in the SOR for a charged-off account in the amount of $646 (1.e). This overdue debt is cited in the SOR for a closed account in the amount of $1,384 (1.f). This overdue debt is cited in the SOR for a charged-off account in the amount of $144 (1.g). This overdue debt is cited in the SOR for a charged-off account in the amount of $645 (1.h).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c), AG ¶ 19(g). The decision turned on the following: The applicant has a history of financial problems, including bankruptcy and failure to file tax returns; The applicant did not provide independent evidence of resolving overdue debts or maintaining payment plans; The applicant's financial difficulties were exacerbated by personal choices, such as helping family members financially.
Why the Applicant Was Denied
- The applicant has a history of financial problems, including bankruptcy and failure to file tax returns.
- The applicant did not provide independent evidence of resolving overdue debts or maintaining payment plans.
- The applicant's financial difficulties were exacerbated by personal choices, such as helping family members financially.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedHistory of Not Meeting Financial Obligations
- AG ¶ 19(g)appliedFailure to File Federal, State or Local Income Tax Returns as Required
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 issuedJul 14, 2014
- Answer filedAug 8, 2014Applicant requested decision on written record.
- Hearing held—No hearing; decided on written record.
- Decision dateMay 28, 2015
Cite For
- Financial Issues Leading to Security Clearance Denial Under Guideline F
- Failure to Provide Evidence of Debt Resolution
- Impact of Personal Financial Choices on Security Clearance Eligibility