Summary
A 51-year-old military retiree was denied a security clearance due to concerns under Guideline F (Financial Considerations) and Guideline E (Personal Conduct). The applicant admitted to significant financial delinquencies, which the judge determined raised doubts about his reliability and trustworthiness.
The Statement of Reasons detailed numerous financial issues. These included filing for Chapter 13 bankruptcy in July 2016 and substantial tax debts, such as $345,660 owed to the U.S. Government for tax years 2010 through 2014. Other tax delinquencies included $11,098 in county real estate taxes, $472 in state unemployment taxes, $72,657 in business trust fund taxes, and an unpaid tax assessment of $5,847. Additionally, the applicant owed $2,638 to state C tax authority, $6,301 to state A for employee withholding tax, and $5,398 to state B for an unpaid tax assessment. A judgment of $27,258 was also outstanding.
Furthermore, the applicant falsified his September 2017 security clearance application by incorrectly stating he had not failed to file or pay required taxes. While several mitigating conditions were considered, the judge ultimately concluded that the admitted financial issues and the falsification of the application warranted a denial of security clearance eligibility.
Why the Applicant Was Denied
- The applicant admitted to multiple financial delinquencies, including significant tax debts and a Chapter 13 bankruptcy.
- The judge concluded that the applicant's financial issues raised doubts about his reliability and trustworthiness.
Conditions Referenced
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 19(f)raisedFailure to File or Fraudulently Filing Annual Federal, State, or Local Income Tax Returns
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant acknowledged that he should have taken more responsibility with his finances sooner than he did.
- AG ¶ 20(c)rejectedReceived Financial Counseling From a Legitimate and Credible SourceThough he received counseling, his bankruptcy plan was not yet approved and outstanding liabilities remained unresolved.
- AG ¶ 20(d)rejectedInitiated and Is Adhering to a Good-faith Effort to Repay Overdue CreditorsThe applicant's bankruptcy plan was not yet approved, and he had unresolved debts.
- AG ¶ 20(g)rejectedMade Arrangements with the Appropriate Tax Authority to File or Pay the Amount OwedThe applicant's tax issues remained unresolved.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedOct 22, 2018
- Answer filedDec 28, 2018
- Hearing heldApr 1, 2019Applicant waived the 15-day hearing notice requirement.
- Decision dateOct 4, 2019
Cite For
- Denial of Security Clearance Due to Unresolved Financial Delinquencies
- Impact of Financial Issues on Reliability and Trustworthiness
- Mitigating Conditions for Financial Considerations Not Established Due to Ongoing Issues