Summary
A 56-year-old defense contractor employee was denied a security clearance under Guideline F (Financial Considerations) due to significant financial delinquencies across 12 accounts, totaling approximately $115,044. The Statement of Reasons detailed a primary mortgage account past due by $40,626, with a total loan balance of $558,112. Additionally, the applicant was indebted on six charged-off credit card accounts, ranging from approximately $3,738 to $35,907, and five medical accounts with balances between $61 and $232. The applicant also owed approximately $5,511 to the Federal Government for delinquent 2011 taxes and failed to file his 2011 Federal Income tax return and his 2012 state income tax return.
Disqualifying conditions F.1.a, F.1.c, and F.1.g were raised, while mitigating conditions F.2.a, F.2.b, F.2.c, F.2.d, and F.2.e were considered.
Ultimately, the clearance was denied because the applicant was indebted on 12 delinquent accounts totaling approximately $115,044. Despite claiming to resolve some debts, he failed to provide adequate documentation for five medical debts and did not file his 2012 state income tax return, leading to concerns about his financial responsibility and reliability.
Why the Applicant Was Denied
- The applicant was indebted on 12 delinquent accounts totaling approximately $115,044.
- He failed to provide documentation for five medical debts he claimed to have resolved.
- The applicant did not file his 2012 state income tax return, raising concerns about his financial responsibility.
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
- F.2.arejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurThe applicant's financial problems are ongoing and recent.
- F.2.brejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant admitted to poor financial management and marital difficulties.
- F.2.crejectedThe Person Has Received or Is Receiving Counseling for the ProblemThe applicant failed to provide evidence of counseling.
- F.2.drejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsWhile the applicant made some payments, he did not demonstrate a consistent track record of responsibility.
- F.2.erejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant did not dispute any of the alleged debts.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedDec 16, 2014
- Answer filedJan 12, 2015
- Hearing heldJul 9, 2015
- Decision dateSep 15, 2015
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Failure to Provide Documentation for Claimed Debt Resolutions
- Ongoing Financial Issues Impacting Security Clearance Eligibility