Summary
The applicant, a 50-year-old male with a history of military service and multiple degrees, faced security clearance denial under Guideline F due to significant financial issues, including charged-off mortgage debts and substantial federal tax liabilities. The judge found that the applicant failed to demonstrate a good-faith effort to resolve these debts, leading to doubts about his reliability and trustworthiness.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: The SOR alleges four debts for mortgages obtained by Applicant and his second wife for rental properties. (SOR ¶¶ 1.a - $31,712) (1.a). The SOR alleges four debts for mortgages obtained by Applicant and his second wife for rental properties. (SOR ¶¶ 1.b - $23,190) (1.b). The SOR alleges four debts for mortgages obtained by Applicant and his second wife for rental properties. (SOR ¶¶ 1.c - $6,402) (1.c). The SOR alleges four debts for mortgages obtained by Applicant and his second wife for rental properties. (SOR ¶¶ 1.d - $3,224) (1.d). He failed to pay his federal income taxes for 2013 (SOR ¶ 1.e - $64,388) (1.e). He failed to pay his federal income taxes for 2014 (SOR ¶ 1.f - $37,363) (1.f). He failed to pay his federal income taxes for 2015 (SOR ¶ 1.g - $51,263) (1.g). He failed to pay his federal income taxes for 2016 (SOR ¶ 1.h - $22,359) (1.h). He failed to pay his federal income taxes for 2017 (SOR ¶ 1.i - $18,198) (1.i). He failed to pay his federal income taxes for 2019 (SOR ¶ 1.j - $8,690) (1.j).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(b), AG ¶ 19(c), AG ¶ 19(f). The decision turned on the following: The applicant admitted to multiple debts, including charged-off mortgage debts and significant federal tax liabilities; The applicant did not demonstrate a good-faith effort to resolve his financial issues, raising serious doubts about his reliability and trustworthiness; The applicant's sporadic payments towards his tax debts were insufficient to mitigate the financial concerns.
Why the applicant was denied
- The applicant admitted to multiple debts, including charged-off mortgage debts and significant federal tax liabilities.
- The applicant did not demonstrate a good-faith effort to resolve his financial issues, raising serious doubts about his reliability and trustworthiness.
- The applicant's sporadic payments towards his tax debts were insufficient to mitigate the financial concerns.
Conditions referenced
- AG ¶ 19(b)raisedUnwillingness to Satisfy Debts Regardless of Ability to Do So
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(f)raisedFailure to File or Fraudulently Filing Annual Federal, State, or Local Income Tax Returns or Failure to Pay Annual Federal, State, or Local Income Tax as Required
Key rule quoted
“Someone who fails repeatedly to fulfill his or her legal obligations does not demonstrate the high degree of good judgment and reliability required of those granted access to classified information.”
Procedural posture
- SOR issuedDec 16, 2021
- Answer filed—undated answer to the SOR
- Hearing heldApr 5, 2023
- Decision dateMay 16, 2023
Cite for
- Failure to Mitigate Financial Concerns Under Guideline F
- Insufficient Good-faith Efforts to Resolve Debts
- Reliability and Trustworthiness Concerns Due to Financial Distress