Summary
The applicant, a DOD contractor employee, faced security clearance denial under Guideline F due to significant unresolved financial issues, including multiple tax liens and delinquent accounts totaling approximately $561,794. Despite acknowledging some debts, the applicant failed to demonstrate responsible financial management or efforts to resolve these issues, leading to the conclusion that he posed a risk to national security.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: a $1,601 delinquent medical account (1.a). a $384 delinquent medical account (1.b). a $290 delinquent medical account (1.c). a $65,990 state tax lien entered in February 2008 (1.d). a $48,121 state tax lien entered in February 2008 (1.e). a $49,451 state tax lien entered in November 2010 (1.f). an $8,231 federal tax lien entered in October 2010 (1.g). an $11,419 federal tax lien entered in August 2011 (1.h). a $3,175 federal tax lien entered in July 2011 (1.i). a $47,957 judgment entered against Applicant in October 2008 (1.j). a $162,068 federal tax lien entered in September 2011 (1.k). a $20,690 federal tax lien entered in June 2010 (1.l). a $141,365 federal tax lien entered in May 2010 (1.m). a $383 medical account placed for collection (1.n). a $305 buyer’s club account placed for collection (1.o). a $314 delinquent medical account (1.p). a $50 traffic ticket placed for collection in February 2011 (1.q).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(b). The decision turned on the following: The applicant has unresolved debts totaling approximately $561,794, including multiple tax liens and medical accounts; The applicant did not provide evidence of efforts to resolve his financial obligations or attend financial counseling; The applicant's financial problems are ongoing and have not been mitigated by any actions taken.
Why the Applicant Was Denied
- The applicant has unresolved debts totaling approximately $561,794, including multiple tax liens and medical accounts.
- The applicant did not provide evidence of efforts to resolve his financial obligations or attend financial counseling.
- The applicant's financial problems are ongoing and have not been mitigated by any actions taken.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedHistory of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions Largely Beyond the Person's ControlThe applicant lost his business due to a downturn, but this was given less weight due to lack of responsible behavior.
Key Rule Quoted
“An applicant is not required to be debt free, but is required to manage his finances in such a way as to meet his financial obligations.”
Procedural Posture
- SOR issuedMay 21, 2015
- Answer filedJun 16, 2015Requested decision on the record.
- Hearing held—No hearing; decision based on written record.
- Decision dateMar 29, 2016
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Importance of Demonstrating Responsible Financial Management
- Impact of Financial Issues on Security Clearance Eligibility