Summary
The applicant, a 45-year-old computer-assisted exercise coach, sought to retain a Secret security clearance but was denied due to a lengthy history of financial difficulties, including significant unpaid tax obligations and debts. The judge found that the applicant's financial issues were not adequately mitigated by circumstances beyond his control or good faith efforts to resolve debts, leading to the conclusion that granting a clearance was not consistent with national interest.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: The Applicant has not paid his Federal income tax obligations in full for tax years 1988, 1989, 1990, 1991, and 1995, totaling about $35 thousand (1.a). The Applicant owes the IRS about $4 thousand in income tax for tax year 1995 (1.b). The Applicant has a $10 thousand consumer debt incurred by his wife during a separation period (1.c). The Applicant has a $3 thousand consumer debt incurred by his wife in March 1997 (1.d). The Applicant owes almost $1 thousand for a city street improvement assessment dating back to 1984 (1.e). The Applicant has unpaid medical bills from several years ago (1.f). The Applicant has a history of not meeting financial obligations and an unwillingness to contact creditors to arrange payment schedules (1.g). The Applicant has allowed his wife to write checks on their joint checking account despite her history of financial irresponsibility (1.h). The Applicant has not made timely payments to creditors and has only paid debts when pressured by the security clearance process (1.i). The Applicant's financial issues are significant and have not been sufficiently mitigated (1.j).
The judge denied the clearance. The government raised disqualifying conditions F.1, F.3. The judge applied mitigating conditions F.3, F.6. The decision turned on the following: The applicant has a lengthy history of not meeting financial obligations; The applicant demonstrated an unwillingness to contact creditors and arrange payment schedules; The applicant's financial issues were exacerbated by his wife's spending habits and mental health issues.
Why the Applicant Was Denied
- The applicant has a lengthy history of not meeting financial obligations.
- The applicant demonstrated an unwillingness to contact creditors and arrange payment schedules.
- The applicant's financial issues were exacerbated by his wife's spending habits and mental health issues.
Conditions Referenced
- F.1raisedHistory of Not Meeting Financial Obligations
- F.3raisedInability or Unwillingness to Satisfy Debts
- F.3rejectedConditions Largely Beyond the Person's ControlThe applicant's financial problems were not wholly unexpected or aberrational.
- F.6rejectedGood-faith Effort to Repay Overdue CreditorsPayments made were not sufficient to demonstrate good faith efforts.
Key Rule Quoted
“Security clearance eligibility requires a reasonable degree of fidelity to one's creditor by contacting the creditor and by attempts to arrange a payment schedule, a reduction in the total amount owed, and/or partial payments as a priority within one's resources.”
Procedural Posture
- SOR issuedMay 19, 1997
- Answer filedJun 16, 1997
- Hearing heldSep 9, 1997
- Decision dateOct 10, 1997
Cite For
- Denial Based on Financial Considerations Under Guideline F
- Impact of Spouse's Financial Behavior on Applicant's Security Clearance
- Insufficient Evidence of Good Faith Efforts to Resolve Debts