Summary
A 67-year-old defense contractor employee was denied a security clearance under Guideline F (Financial Considerations) due to unresolved financial issues. The Statement of Reasons cited two state tax liens: one from 2010 for $98,000, indicating a failure to pay taxes as required, and another for $96,239. These issues raised disqualifying conditions under Adjudicative Guidelines (AG) ¶ 19(a), (c), and (g).
Despite the application of mitigating conditions under AG ¶ 20(a), (b), (c), (d), and (e), the judge found the applicant failed to provide sufficient information regarding her finances and progress in resolving the state tax liens. A lack of good faith was identified in her financial management leading up to her bankruptcy.
Ultimately, insufficient evidence was presented to demonstrate that her financial problems were under control or that they would not recur, leading to the denial of her security clearance.
Why the Applicant Was Denied
- The applicant failed to provide sufficient information about her finances and progress in resolving her state tax lien.
- The judge found a lack of good faith in the handling of her finances leading up to her bankruptcy.
- Insufficient evidence was presented to demonstrate that financial problems were under control or would not recur.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(g)raisedFailure to File Annual Federal, State, or Local Income Tax Returns as Required
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to RecurThe applicant's financial issues were recent and ongoing.
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlWhile some conditions were cited, the applicant did not provide sufficient evidence to demonstrate responsible actions taken.
- AG ¶ 20(c)rejectedReceived or Is Receiving Counseling for the ProblemThe applicant did not provide evidence of effective counseling or resolution of financial issues.
- AG ¶ 20(d)rejectedInitiated a Good-faith Effort to Repay Overdue CreditorsThe applicant did not demonstrate a good faith effort to resolve debts.
- AG ¶ 20(e)notedReasonable Basis to Dispute the Legitimacy of the Past-due Debt
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 issuedJul 16, 2015
- Answer filedAug 1, 2015Applicant waived her right to a hearing.
- Hearing held—
- Decision dateNov 5, 2015
Cite For
- Insufficient Evidence of Financial Responsibility Under Guideline F
- Lack of Good Faith in Resolving Financial Obligations
- Disqualifying Conditions Related to Financial Issues