Summary
A 55-year-old mechanical designer for a Department of Defense contractor was denied a security clearance under Guideline F, Financial Considerations. The denial stemmed from a history of significant financial issues, including a failure to file federal and state income tax returns for six consecutive years, from 2009 through 2014.
Further financial concerns included falling behind on mortgage payments, which ultimately led to a foreclosure. The applicant also had unresolved debts, specifically an outstanding telephone bill of $171. Another telephone bill for $225 was resolved by returning equipment to the creditor.
Despite a long employment history and positive performance reviews, the applicant's ongoing financial problems and a lack of proactive steps to address them were central to the denial. The applicant did not present a plan to resolve the outstanding financial issues or seek financial counseling, leading to the final decision to deny the security clearance.
Why the Applicant Was Denied
- The applicant failed to file federal and state income tax returns for six years.
- He has unresolved debts, including a $171 unpaid telephone bill and a history of mortgage default leading to foreclosure.
- The applicant did not demonstrate a plan to resolve his financial issues or seek financial counseling.
Conditions Referenced
- F.1.aappliedInability or Unwillingness to Satisfy Debts
- F.1.cappliedA History of Not Meeting Financial Obligations
- F.1.gappliedFailure to File Annual Federal, State, or Local Income Tax Returns as Required
- F.2.brejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlWhile the applicant experienced family deaths and depression, he did not act reasonably to manage his finances afterward.
- F.2.crejectedThe Person Has Received or Is Receiving Counseling for the Problem And/or There Are Clear Indications That the Problem Is Being Resolved or Is Under ControlThe applicant did not provide evidence of financial counseling.
- F.2.drejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant has not made efforts to resolve his tax issues or the $171 debt.
Key Rule Quoted
“A person who fails to repeatedly fulfill his or her legal obligations does not demonstrate the high degree of good judgment and reliability required of persons granted access to classified information.”
Procedural Posture
- SOR issuedOct 17, 2014
- Answer filedNov 12, 2014
- Hearing heldMay 13, 2015
- Decision dateAug 13, 2015
Cite For
- Failure to File Tax Returns as a Disqualifying Condition Under Guideline F
- Lack of Proactive Financial Management as a Basis for Denial
- Impact of Personal Circumstances on Financial Obligations and Security Clearance Eligibility