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ISCR Case 23-00099 — CASE

Case record

ISCR Case 23-00099

A decided public DOHA case, shown for research — not advice or a prediction.

Case Profile
Decision Date9/7/2023
Statusdenied
LevelHEARING
TypeSTANDARD ISCR
Participants
Applicant Representation: Pro Se
Judge: Roger C. Wesley
Government Counsel: Andrew H. Henderson
Case Summary
The applicant in this case was a 52-year-old employee of a defense contractor seeking a security clearance. The Department of Defense issued a Statement of Reasons (SOR) citing financial considerations as the primary concern, specifically the applicant's failure to file federal and state income tax returns for the years 2012 through 2014, and his history of filing for Chapter 7 bankruptcy in 1999 and 2013. The allegations raised questions about the applicant's reliability and judgment in managing financial obligations.
In his response to the SOR, the applicant admitted to the allegations but attributed his tax-filing issues to financial difficulties related to child support obligations. He claimed to have learned from his past mistakes and expressed a desire to obtain a security clearance to improve his employment situation. However, he failed to provide evidence of having filed the necessary tax returns or paid any owed taxes, leaving the extent of his financial compliance unclear.
The administrative judge ruled against the applicant, concluding that he did not sufficiently mitigate the financial concerns raised. The judge emphasized that the applicant's history of tax noncompliance and repeated bankruptcy filings indicated a lack of reliability and judgment, which are critical factors in determining eligibility for access to classified information. Consequently, the applicant's request for a security clearance was denied.
Guidelines Evaluated
- Guideline FFinancial Considerations · Against Applicant
Similar decisions
Other decisions whose allegations read most like this one. Descriptive similarity of the allegations only — not a prediction.
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Case Headnote

ISCR Case No. 23-00099

deniedSep 7, 2023· Hon. Roger C. Wesley· hearing

Summary

A 52-year-old defense contractor employee was denied a security clearance under Guideline F (Financial Considerations) due to a history of unresolved financial issues. The Statement of Reasons cited his failure to file federal and state income tax returns for the 2012 through 2014 tax years and to pay any associated taxes. Additionally, the applicant had filed for Chapter 7 bankruptcy relief twice: once in about June 1999, discharged in about September 1999, and again in about May 2013, discharged in about August 2013.

The judge identified Disqualifying Conditions 19(a), 19(c), and 19(f). The denial was based on the applicant's failure to file tax returns for 2012-2014 and his multiple bankruptcies, which raised significant concerns about his financial management.

Despite the applicant acknowledging his financial difficulties and claiming to have learned from past mistakes, he did not provide sufficient evidence of timely filing tax returns or paying owed taxes. The judge concluded there was insufficient evidence of financial stability or responsible management of obligations, deeming trustworthiness essential for handling classified information.

Why the Applicant Was Denied

The applicant failed to file federal and state tax returns for 2012-2014.
The applicant has a history of multiple bankruptcies, raising concerns about financial management.
The applicant did not provide evidence of timely filing tax returns or paying owed taxes.

Conditions Referenced

Disqualifying

19(a)raisedInability to Satisfy Debts
19(c)raisedA History of Not Meeting Financial Obligations
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

“Eligibility for access to classified information may only be granted "upon a finding that it is clearly consistent with the national interest to do so."”
— Exec. Or. 10865, Safeguarding Classified Information within Industry § 2 (Feb. 20, 1960)

Procedural Posture

SOR issuedJan 24, 2023
Answer filedJan 31, 2023Requested resolution on the written record without a hearing.
Hearing held—No hearing was conducted.
Decision dateSep 7, 2023

Cite For

Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
Importance of Demonstrating Financial Stability for Security Clearance Eligibility
Impact of Multiple Bankruptcies on Trustworthiness and Reliability Assessments

Editorial summary generated for research. Not legal advice; not a prediction. Verify against the full decision before relying on any quoted language.

Standardized Decision Profile

SEAD-4 Guideline F · descriptive summary of a decided case

Posture: Decision on RecordDecided: denied

The judge found against the applicant on financial considerations due to failure to file tax returns for multiple years and two Chapter 7 bankruptcy filings. The applicant's claims of improved responsibility and lessons learned were not sufficient to mitigate the financial concerns.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	failed to file his federal and state tax income tax returns, as required, for tax years 2012 through 2014, and pay any taxes owing	Against Applicant	Tax Filing Failure	Admitted	—	—	Claimed Other
1.b	filed for Chapter 7 bankruptcy relief in about May 2013 (discharged in about August 2013)	Against Applicant	Bankruptcy Filing	Admitted	—	—	Claimed Other
1.c	filed for Chapter 7 bankruptcy relief in about June 1999 (discharged in about September 1999)	Against Applicant	Bankruptcy Filing	Admitted	—	—	Claimed Other

Descriptive standardized rendering of a decided public case (Guideline F). The verbatim source decision is shown in full below.

Full decision

The complete, official text — footnotes and signatures included — is in the original PDF.