Summary
The applicant, a 45-year-old defense contractor, faced security clearance denial under Guideline F due to significant financial delinquencies, including two federal tax liens totaling $119,144 and two state tax liens totaling $92,483. Despite some efforts to resolve certain debts, the applicant failed to demonstrate responsible actions regarding the majority of his financial obligations, leading to the conclusion that he posed a risk to national security.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: delinquent on two Federal income tax liens totaling $119,144 (1.a). delinquent on two Federal income tax liens totaling $119,144 (1.b). delinquent on two state tax liens totaling $92,483 (1.c). delinquent on two state tax liens totaling $92,483 (1.d). delinquent in the amount of $104,554 on a $535,318 mortgage (1.e). delinquent in the amount of $3,115 on a $416,947 mortgage (1.f). delinquent in the amount of $72,636 on a $420,000 mortgage (1.g). delinquent on a charged off account in the amount of $205,478 (1.h). past due on a $52,206 home equity line of credit in the amount of $8,492 (1.i). delinquent on a $21,642 charged-off debt (1.j). delinquent on a $19,940 charged-off line of credit (1.k). delinquent on a $17,274 charged-off debt (1.l). delinquent on a $13,857 charged-off debt (1.m). delinquent on a $12,940 charged-off credit card debt (1.n). delinquent on a $1,625 charged-off debt (1.o). delinquent on a $527 charged-off debt (1.p). delinquent on a $134 charged-off debt (1.q). delinquent on a $528 charged-off debt (1.r).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c), AG ¶ 19(e). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(d), AG ¶ 20(e). The decision turned on the following: The applicant has unresolved federal and state tax liens totaling $211,627; The applicant demonstrated a history of financial irresponsibility and excessive indebtedness; The applicant failed to provide evidence of effective actions taken to resolve the majority of his debts.
Why the Applicant Was Denied
- The applicant has unresolved federal and state tax liens totaling $211,627.
- The applicant demonstrated a history of financial irresponsibility and excessive indebtedness.
- The applicant failed to provide evidence of effective actions taken to resolve the majority of his debts.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(e)raisedConsistent Spending Beyond One’s Means
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlWhile unemployment was a factor, the applicant's poor judgment and excessive spending contributed to his financial issues.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant resolved only three of the 18 debts listed in the SOR.
- AG ¶ 20(e)rejectedDispute of Legitimacy of Past-due DebtThe applicant provided no documented proof of disputes with creditors.
Key Rule Quoted
“A person who seeks access to classified information enters into a fiduciary relationship with the Government predicated upon trust and confidence.”
Procedural Posture
- SOR issuedOct 30, 2015
- Answer filedDec 2, 2015
- Hearing heldMar 1, 2016Applicant testified and presented evidence.
- Decision dateApr 28, 2016
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Impact of Financial Irresponsibility on Security Clearance Eligibility
- Criteria for Evaluating Financial Considerations Under Guideline F