Summary
A 51-year-old defense contractor, with prior security clearances, was denied a security clearance due to significant financial issues under Guideline F (Financial Considerations). The Statement of Reasons detailed over $58,000 in delinquent obligations, including a 1988 bankruptcy and substantial outstanding tax debts to State A and a municipality in State A, totaling $7,698.70 and $7,000.00 respectively, for various tax years between 1988 and 1994.
Additionally, the applicant owed multiple creditors for various services, including dental, medical, and telephone bills, ranging from $51.00 to $2,869.00, with many accounts referred for collection or charged off between 1993 and 1995. At the time of review, the applicant was also two months behind on car payments and not making credit card payments.
Despite recent payments to the IRS and efforts to address some debts, the judge found insufficient evidence of sustainable progress in resolving the applicant's extensive financial problems. The decision cited a long history of financial difficulties, including bankruptcy and significant tax obligations, and an erratic employment history, which raised doubts about his financial viability and ability to manage his debts.
Why the Applicant Was Denied
- The applicant has a long history of financial problems, including bankruptcy and significant tax obligations.
- He failed to demonstrate sustainable progress in addressing his extensive delinquent financial obligations.
- His erratic employment history raises doubts about his financial viability and ability to manage his debts.
Conditions Referenced
- F1raisedA History of Not Meeting Financial Obligations
- F3raisedInability or Unwillingness to Satisfy Debts
- F3rejectedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's ControlWhile the applicant experienced unemployment and a divorce, the judge found that he had not made sufficient progress in resolving his debts.
- F6rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant's recent efforts were insufficient to mitigate the ongoing financial issues.
Key Rule Quoted
“An individual who is financially overextended is at risk of having to engage in illegal acts to generate funds.”
Procedural Posture
- SOR issuedJul 22, 1997
- Answer filedAug 12, 1997
- Hearing heldDec 10, 1997
- Decision dateFeb 3, 1998
Cite For
- Denial Based on a History of Financial Irresponsibility Under Guideline F
- Insufficient Evidence of Sustainable Financial Recovery
- Impact of Erratic Employment History on Financial Obligations