Summary
The applicant, a 36-year-old defense contractor employee and Navy veteran, faced security clearance denial under Guideline F due to unresolved financial debts totaling over $37,000 and failure to file tax returns for 2011 and 2012. The judge found that the applicant's financial issues were ongoing and not sufficiently mitigated, leading to questions about his reliability and trustworthiness.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: failed to file his Federal and state income tax return in 2011 (1.a). failed to file his Federal and state income tax return in 2012 (1.b). indebted on a medical account in the approximate amount of $1,179 (1.c). indebted on a medical account in the approximate amount of $268 (1.d). indebted on a medical account in the approximate amount of $49 (1.e). indebted on a collection account in the approximate amount of $778 (1.f). indebted on a medical account in the approximate amount of $720 (1.g). indebted on a medical account in the approximate amount of $80 (1.h). indebted on a charged-off account in the approximate amount of $425 (1.i). indebted on a collection account in the approximate amount of $850 (1.j). delinquent on his $173,000 home mortgage in the approximate amount of $28,888 (1.k). indebted on a collection account in the approximate amount of $967 (1.l). indebted on a collection account in the approximate amount of $123 (1.m). indebted on a collection account in the approximate amount of $55 (1.n). indebted on a medical account in the approximate amount of $281 (1.o). indebted on a collection account in the approximate amount of $214 (1.p). indebted on a medical account in the approximate amount of $2,952 (1.q).
The judge denied the clearance. The government raised disqualifying conditions F.1.a, F.1.c, F.1.g. The decision turned on the following: Applicant has unresolved debts totaling over $37,000; Applicant failed to file his 2011 and 2012 Federal and state income tax returns; Applicant did not demonstrate a plan to resolve his financial issues.
Why the Applicant Was Denied
- Applicant has unresolved debts totaling over $37,000.
- Applicant failed to file his 2011 and 2012 Federal and state income tax returns.
- Applicant did not demonstrate a plan to resolve his financial issues.
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
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 issuedFeb 21, 2015
- Answer filed—Applicant submitted an undated response.
- Hearing heldAug 7, 2015
- Decision dateSep 21, 2015
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Failure to File Tax Returns as a Disqualifying Factor
- Ongoing Financial Issues Impacting Reliability and Trustworthiness