Summary
A 52-year-old applicant was denied a security clearance under Guideline F, Financial Considerations, due to significant unresolved financial issues. The Statement of Reasons detailed a state tax lien of $4,728, a 2012 judgment for $1,995 in unpaid rent, six collection accounts, five delinquent medical accounts, and a past-due mortgage. Critically, the applicant also failed to file state and federal income tax returns from 2007 to the present, resulting in unpaid taxes for those years.
The applicant admitted to approximately $113,000 in delinquent debts and acknowledged the failure to file tax returns and the outstanding tax obligations. Disqualifying conditions related to financial irresponsibility and a pattern of financial difficulties were raised.
Despite the application of several mitigating conditions, the applicant did not provide evidence of any payments made towards his debts or a concrete plan for their resolution. Consequently, he failed to meet the burden of proof for mitigation, leading to the denial of his security clearance.
Why the Applicant Was Denied
- The applicant admitted to significant delinquent debts totaling approximately $113,000.
- He failed to file state and federal tax returns from 2007 to the present, with unpaid taxes still unresolved.
- The applicant did not provide evidence of any payments made towards his debts or a plan to resolve them.
Conditions Referenced
- FC DC AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- FC DC AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- FC DC AG ¶ 19(g)raisedFailure to File Federal or State Tax Returns as Required by Law
- FC MC AG ¶ 20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur and Does Not Cast Doubt on the Individual’s Current Reliability, Trustworthiness, or Good JudgmentThe applicant's financial difficulties are recent and ongoing.
- FC MC AG ¶ 20(b)rejectedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person’s Control and the Individual Acted Responsibly Under the CircumstancesThe applicant did not demonstrate a nexus between his unemployment and his financial obligations.
- FC MC AG ¶ 20(c)rejectedThe 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 ControlThere is no evidence of financial counseling or efforts to resolve debts.
- FC MC AG ¶ 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant did not provide evidence of any good-faith efforts to repay debts.
Key Rule Quoted
“The ultimate burden of persuasion is on the applicant seeking a security clearance.”
Procedural Posture
- SOR issuedApr 29, 2015
- Answer filed—Applicant requested a review based on the written record.
- Hearing held—No hearing; decision based on written record.
- Decision dateFeb 23, 2016
Cite For
- Denial of Security Clearance Due to Significant Financial Obligations Under Guideline F
- Failure to Provide Evidence of Debt Resolution Efforts
- Importance of the Applicant's Burden of Proof in Financial Considerations Cases