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Summary

The applicant, a 41-year-old electronic technician for a defense contractor, faced security clearance denial under Guideline F due to significant financial issues, including multiple delinquent accounts and failure to file tax returns for several years. The judge found that the applicant's financial problems were not under control and that he lacked a concrete plan to address his debts, leading to concerns about his reliability and trustworthiness.

Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: two medical (weight loss) accounts with past-due balances of $171 and $122 that were placed for collection when the insurance did not cover the charges and Applicant disputed the diagnoses (1.a). two medical (weight loss) accounts with past-due balances of $171 and $122 that were placed for collection when the insurance did not cover the charges and Applicant disputed the diagnoses (1.b). a cable television account with a past-due balance of $849 that was placed for collection when Applicant terminated his service and failed to return associated equipment (1.c). an unspecified bank loan account with a past-due balance of $3,066 (erroneously alleged as $3,773) that was placed for collection (1.d). an unspecified bank loan account with a past-due balance of $7,576 (subsequently increased to $7,976) that was placed for collection (1.e). a fitness center account with an unpaid balance of $842 that was placed for collection (1.f). an unspecified bank loan account with a past-due balance of $2,142 that was placed for collection (1.g). a home mortgage on Applicant’s former principal residence, but now a rental property, with over a 120 days past-due balance of $3,773 (and a remaining balance of $91,130) that was placed for collection (1.h). a combined Internet and cable television account with an unpaid balance of $294 that was placed for collection (1.i). a telephone account with an unpaid balance of $937 that was placed for collection (1.j). a cellular telephone account with a past-due balance of $1,675 that was placed for collection (1.k). an insurance account with an unpaid balance of $231 that was placed for collection (1.l). an unspecified type of account with an unpaid balance of $5,833 that was placed for collection and charged off (1.m).

The judge denied the clearance. The government raised disqualifying conditions F1. The decision turned on the following: The applicant admitted to all allegations of financial irresponsibility and failed to provide evidence of resolving his debts; The applicant did not file federal income tax returns for multiple years, indicating a lack of financial responsibility; The applicant's financial issues were extensive, with numerous delinquent accounts totaling approximately $28,218.

Why the Applicant Was Denied

• The applicant admitted to all allegations of financial irresponsibility and failed to provide evidence of resolving his debts.
• The applicant did not file federal income tax returns for multiple years, indicating a lack of financial responsibility.
• The applicant's financial issues were extensive, with numerous delinquent accounts totaling approximately $28,218.

Conditions Referenced

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 7, 2015
• Answer filedMar 9, 2015
• Hearing heldAug 25, 2015
• Decision dateDec 8, 2015

Cite For

• Denial of Security Clearance Due to Financial Irresponsibility Under Guideline F
• Failure to File Tax Returns as a Disqualifying Factor
• Lack of a Concrete Plan to Address Financial Issues as a Basis for Denial