Summary
A 59-year-old male applicant with military service was denied a security clearance under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The denial stemmed from significant financial issues, primarily driven by gambling, and concerns regarding his personal conduct.
The applicant's financial history included three bankruptcies: a Chapter 7 filing in 1996, a Chapter 13 filing in 2009 (discharged in 2015), and another Chapter 13 filing in March 2018, which was dismissed in November 2018 due to missed payments. He also owed the IRS $34,548 for tax year 2016 and $89,220 for tax year 2017. Additionally, he had five charged-off accounts totaling $37,326 and engaged in substantial financial transactions related to gambling.
Regarding personal conduct, the applicant was terminated from employment in 2017 after his access to SCI was suspended due to financial and personal conduct concerns. Crucially, he falsified his 2018 Security Clearance Application by answering "NO" to a question about past financial problems due to gambling. The judge found that despite some efforts to address debts, there was insufficient evidence of financial responsibility and ongoing gambling issues, leading to a determination that the applicant's reliability and trustworthiness were in doubt.
Why the applicant was denied
- The applicant failed to disclose financial problems related to gambling on his security clearance application.
- The applicant's financial issues included multiple bankruptcies and significant tax debts, raising concerns about his reliability and trustworthiness.
- The applicant's gambling behavior contributed to his financial distress and was not adequately mitigated by his recent efforts to resolve debts.
Conditions referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(f)raisedFailure to File or Pay Taxes as Required
- AG ¶ 19(i)raisedConcealing Gambling Losses or Problems Caused by Gambling
- AG ¶ 20(a)rejectedBehavior Happened Long Ago or Under Circumstances Unlikely to RecurThe applicant's questionable behavior is recent and ongoing.
- AG ¶ 20(b)rejectedConditions Beyond the Person's ControlThe applicant's financial problems were due to his gambling issues.
- AG ¶ 20(c)rejectedReceiving Financial CounselingThe applicant failed to present evidence of receiving financial counseling.
- AG ¶ 20(d)appliedGood-faith Effort to Repay DebtsThe applicant established a payment plan with the IRS but had previously stopped payments.
- AG ¶ 20(g)appliedArrangements with Tax AuthorityThe applicant has a payment plan with the IRS but has not consistently adhered to it.
Key rule quoted
“Once a concern arises regarding an applicant’s security clearance eligibility, there is a strong presumption against granting a security clearance.”
Procedural posture
- SOR issuedJul 21, 2021
- Answer filedAug 3, 2021
- Hearing heldApr 5, 2022
- Decision dateMay 5, 2022
Cite for
- Denial of Security Clearance Due to Financial Irresponsibility Under Guideline F
- Failure to Disclose Gambling-related Financial Issues Under Guideline E
- Insufficient Evidence of Rehabilitation From Gambling Addiction Affecting Financial Stability.