Summary
A 63-year-old material handler for a defense contractor was denied a security clearance under Guideline F, Financial Considerations, due to a history of unresolved financial issues. The Statement of Reasons detailed several delinquent and unpaid accounts, including an unspecified bank account with an $8,634 balance, a bank credit card with a $911 balance, and another unspecified account for $782. Additional debts included a charged-off bank credit card for $340, a telephone account for $182, and another unspecified bank account for $1,241.
Furthermore, the applicant had an unspecified amount of unpaid federal income taxes for the years 2004 through 2011 and failed to file federal income tax returns for 2011. Disqualifying conditions related to these issues were raised, while mitigating conditions were also considered.
Ultimately, the clearance was denied because the applicant failed to provide sufficient evidence of efforts to resolve her financial problems. The judge found a long history of not meeting financial obligations and no demonstration of a good-faith effort to repay debts or seek financial counseling, leading to concerns about her reliability and trustworthiness.
Why the Applicant Was Denied
- The applicant failed to provide evidence of resolving her financial issues.
- She had a long history of not meeting financial obligations, including unpaid taxes and delinquent accounts.
- The applicant did not demonstrate a good-faith effort to repay her debts or seek financial counseling.
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(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- AG ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the Problem
- AG ¶ 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
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 issuedSep 11, 2015
- Answer filedOct 19, 2015Applicant elected for a written record decision.
- Hearing held—No hearing; decision based on written record.
- Decision dateMay 9, 2016
Cite For
- Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
- Failure to Demonstrate Good-faith Efforts to Resolve Debts
- Impact of Financial Irresponsibility on Security Clearance Eligibility