Summary
A 53-year-old waterfront manager was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The applicant had a history of significant financial problems, including a bankruptcy and multiple delinquent debts. Specifically, he failed to timely file federal income tax returns for several years between 2000 and 2017 and owed federal taxes of $54,297 for 2006 and $3,007 for 2007. Additionally, he had five delinquent student loans totaling approximately $44,000, along with other delinquent debts of $1,161 and $747.
Beyond the financial issues, the applicant engaged in personal conduct that raised serious doubts about his reliability and trustworthiness. He falsified his Security Clearance Application (SCA) in November 2012 and failed to disclose his unfiled income tax returns on his July 2016 SCA. Furthermore, he falsified answers to financial interrogatories in March 2018.
The judge found that while some mitigating conditions were considered, the applicant's extensive financial problems and his repeated falsifications during the security clearance process were disqualifying. These issues collectively led to the denial of his security clearance.
Why the applicant was denied
- The applicant's financial issues included a history of bankruptcy, delinquent debts, and failures to file tax returns.
- The applicant admitted to falsifying information on his security clearance application and during the adjudication process.
Conditions referenced
- AG ¶ 19(a)appliedInability to Satisfy Debts
- AG ¶ 19(b)appliedUnwillingness to Satisfy Debts
- AG ¶ 19(c)appliedHistory of Not Meeting Financial Obligations
- AG ¶ 19(d)appliedDeceptive or Illegal Financial Practices
- AG ¶ 19(f)appliedFailure to File or Fraudulently Filing Tax Returns
- AG ¶ 16(a)appliedDeliberate Omission or Falsification of Relevant Facts
- AG ¶ 16(b)appliedDeliberately Providing False or Misleading Information
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago or Infrequent
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's Control
- AG ¶ 20(c)rejectedReceiving Financial Counseling
- AG ¶ 20(d)appliedGood-faith Effort to Repay Debts
- AG ¶ 20(g)appliedArrangements with Tax Authority
Key rule quoted
“A security clearance adjudication is not a tax-enforcement procedure. It is an evaluation of an individual’s judgment, reliability, and trustworthiness.”
Procedural posture
- SOR issuedFeb 23, 2019
- Answer filedApr 15, 2019
- Hearing heldMay 7, 2019conducted by video teleconference
- Decision dateJun 6, 2019
Cite for
- Denial Based on Financial Irresponsibility Under Guideline F
- Falsification of Information During the Security Clearance Process Under Guideline E
- Evaluation of Personal Conduct in Relation to Security Clearance Eligibility