Summary
The applicant, a 49-year-old male employed by a Department of Defense contractor, faced security clearance denial under Guideline F due to financial considerations. He admitted to multiple delinquent debts totaling approximately $21,857 and failed to file federal and state income tax returns for 2010-2012. The judge found that the applicant did not provide sufficient evidence of efforts to resolve his financial issues, leading to concerns about his reliability and trustworthiness.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: $1,116 judgment filed against Applicant for a delinquent credit card account (1.a). $6,893 federal tax lien entered against Applicant in 2008 (1.b). $8,395 defaulted automobile loan that was placed for collection (1.c). $7,344 automobile loan that was 60 days past due in the amount of $368 (1.d). $2,523 account that was placed for collection (1.e). $2,180 charged-off credit card account (1.f). $382 charged-off credit card account (1.g).
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(b), AG ¶ 20(d), AG ¶ 20(e). The decision turned on the following: The applicant has multiple delinquent debts totaling approximately $21,857; He failed to file federal and state income tax returns for 2010-2012; The applicant did not provide sufficient documentation to demonstrate a good-faith effort to resolve his debts.
Why the Applicant Was Denied
- The applicant has multiple delinquent debts totaling approximately $21,857.
- He failed to file federal and state income tax returns for 2010-2012.
- The applicant did not provide sufficient documentation to demonstrate a good-faith effort to resolve his debts.
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 Annual Federal, State, or Local Income Tax Returns
- AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlThe applicant experienced periods of unemployment and a divorce that contributed to his financial issues.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue Creditors or Resolve DebtsThe applicant did not provide documentation to verify efforts to resolve his debts.
- AG ¶ 20(e)appliedReasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant successfully disputed one debt, finding for him on SOR ¶ 1.f.
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 24, 2014
- Answer filedAug 5, 2014Applicant requested decision on written record.
- Hearing heldApr 10, 2015FORM forwarded to hearing office.
- Decision dateApr 27, 2015
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Impact of Financial Irresponsibility on Security Clearance Eligibility
- Consideration of Mitigating Conditions in Financial Cases Under Guideline F