Summary
A 49-year-old designer employed by a defense contractor was denied a security clearance due to significant financial considerations and criminal conduct. The applicant had a history of delinquent debts totaling approximately $14,617.00, which remained largely unaddressed. These debts included an unsatisfied $910.71 loan judgment from 1993, a $1,132.00 charged-off revolving account, and judgments for delinquent real estate taxes ($605.57) and another creditor ($668.00).
Further financial issues included an unpaid $80.00 credit card debt, a $1,544.00 bank loan judgment, and an automobile loan judgment of $5,402.70, which had grown to approximately $8,356.00 by late 1997. Other outstanding debts included a $96.00 hospital bill, two past-due department store accounts totaling $1,789.00, and a $65.00 cable television bad debt. Additionally, the applicant fell behind on child support payments by $3,000.00, leading to wage garnishment from 1994 to 1997.
Beyond the delinquent debts, the applicant failed to file federal income tax returns for tax years 1993 through 1996, despite having W-2 forms. The judge found that the applicant's financial irresponsibility and lack of effort to resolve his debts, coupled with the failure to file tax returns, raised significant security concerns, leading to the denial of his security clearance.
Why the applicant was denied
- The applicant had a history of delinquent debts totaling approximately $14,617.00, which he failed to address responsibly despite being gainfully employed.
- The applicant did not file federal income tax returns for tax years 1993 to 1996, raising concerns about his judgment and reliability.
Conditions referenced
- F1appliedA History of Not Meeting Financial Obligations
- F3appliedInability or Unwillingness to Satisfy Debts
- J1raisedAny Criminal Conduct, Regardless of Whether the Person Was Formally Charged
- F3rejectedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's Control (e.g., Loss of Employment)While the applicant's debts were incurred during periods of unemployment, he failed to make good-faith efforts to repay them once employed.
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 issuedJan 27, 1998
- Answer filedFeb 20, 1998
- Hearing heldApr 21, 1998
- Decision dateMay 7, 1998
Cite for
- Denial of Security Clearance Due to Financial Irresponsibility Under Guideline F
- Failure to File Tax Returns as a Disqualifying Factor Under Guideline J
- The Importance of Addressing Financial Obligations to Maintain Security Clearance Eligibility