Summary
The applicant, a 41-year-old male with a high school education and military service, faced security concerns under Guideline F due to significant unpaid debts totaling over $16,000, including a tax debt from 2007. Despite attributing his financial issues to unemployment and medical problems, the judge found that the applicant failed to demonstrate responsible financial behavior or efforts to resolve his debts, leading to a denial of his security clearance application.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant is indebted to the Internal Revenue Service (IRS) for delinquent taxes for tax year 2007 in the approximate amount of $20,000 (1.a). Applicant owes a deficiency balance of $6,503 to a collection agency for a repossessed truck (1.b). Applicant owes $3,545 for a loan and line of credit obtained from his credit union (1.c). Applicant owes $1,249 for check-writing overdrafts (1.d). Applicant owes $547 for cable services that has been delinquent since 2014 (1.e). Applicant owes $399 to an electric company (1.f). Applicant owes $244 for medical services (1.g). Applicant owes $183 for medical services (1.h). Applicant owes $2,487 for unpaid rent for an apartment he rented in 2007 (1.i). Applicant owes $758 for medical services (1.j). Applicant owes $574 for medical services (1.k). Applicant owes $62 to an electric company (1.l). Applicant owes $2,243 for unpaid rent for an apartment he rented in 2007 (1.m).
The judge denied the clearance. The government raised disqualifying conditions F.19(a), F.19(c). The judge applied mitigating conditions F.20(b), F.20(d). The decision turned on the following: Applicant has over $16,000 in unpaid debts, including a significant tax debt from 2007; He failed to take responsible actions to resolve his financial issues despite having the means to do so; The applicant's history of living beyond his means raises doubts about his reliability and judgment.
Why the Applicant Was Denied
- Applicant has over $16,000 in unpaid debts, including a significant tax debt from 2007.
- He failed to take responsible actions to resolve his financial issues despite having the means to do so.
- The applicant's history of living beyond his means raises doubts about his reliability and judgment.
Conditions Referenced
- F.19(a)appliedInability or Unwillingness to Satisfy Debts
- F.19(c)appliedA History of Not Meeting Financial Obligations
- F.20(b)raisedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlApplicant attributed his financial issues to unemployment and medical problems.
- F.20(d)rejectedGood-faith Effort to Repay Overdue Creditors or Resolve DebtsApplicant did not demonstrate a good-faith effort to resolve his 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 issuedOct 19, 2015
- Answer filedNov 14, 2015
- Hearing heldMar 15, 2016
- Decision dateApr 29, 2016
Cite For
- Failure to Mitigate Financial Concerns Under Guideline F
- Impact of Financial Irresponsibility on Security Clearance Eligibility
- Consideration of the Whole-person Concept in Financial Cases