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Summary

The applicant, a 55-year-old defense contractor and retired Air Force master sergeant, faced security clearance denial due to unresolved financial issues and personal conduct concerns. His history included multiple bankruptcies, significant federal and state tax liabilities, and disciplinary actions during military service. The judge found that the applicant failed to mitigate the security concerns under Guideline F (financial considerations) and Guideline E (personal conduct).

Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: All allegations under Guideline F were cross alleged under the Personal Conduct concern (2.a). Received Article 15 nonjudicial punishment for misuse of his government credit card for personal purposes (2.b). Received Article 15 nonjudicial punishment for unlawful assault on another (2.c). Arrested and charged with battery, touch or strike (domestic violence) (2.d). Arrested and charged with driving while intoxicated (DWI) first offense; and possession of marijuana (2.e). Terminated from employment with DOD contractor B based on misuse of information technology (2.f). Falsified material facts on his January 2018 e-QIP regarding federal tax returns (2.g). Falsified material facts on his January 2018 e-QIP regarding police record (2.h). Falsified material facts on his August 2020 e-QIP regarding federal tax returns (2.i). Falsified material facts on his August 2020 e-QIP regarding police record (2.j). Delinquent federal tax debt, an approximate total of $20,731 for tax years 2018 to 2022 (1.a). Delinquent state income tax debt, an approximate total of $5,159 for tax years 2018-2022 (1.b). Judgment in the amount of $4,977 entered against Applicant in July 2021 (1.c). Judgments entered against him on behalf of a condominium association in the amounts of $7,892 and $3,952 (1.d). $758 insurance account placed for collection (1.e). Charged-off credit union account in the amount of $398 (1.g). $878 furniture store account that was charged off (1.h). Mortgage account that went to foreclosure in 2019 (1.i).

The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c), AG ¶ 19(f), AG ¶ 16(a), AG ¶ 16(c), AG ¶ 16(e). The judge applied mitigating conditions AG ¶ 20(d), AG ¶ 17(c), AG ¶ 17(e). The decision turned on the following: The applicant has a long history of financial problems, including multiple bankruptcies and significant delinquent debts; He failed to provide sufficient evidence of responsible financial management or resolution of his tax debts; The applicant's deliberate omissions regarding his financial issues on security clearance applications raised questions about his trustworthiness.

Why the Applicant Was Denied

• The applicant has a long history of financial problems, including multiple bankruptcies and significant delinquent debts.
• He failed to provide sufficient evidence of responsible financial management or resolution of his tax debts.
• The applicant's deliberate omissions regarding his financial issues on security clearance applications raised questions about his trustworthiness.

Conditions Referenced

Key Rule Quoted

“The protection of the national security is the paramount consideration.”

Procedural Posture

• SOR issuedNov 9, 2023
• Answer filedJan 18, 2024
• Hearing heldJan 30, 2025via video-teleconference
• Decision dateMay 21, 2025

Cite For

• Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
• Impact of Personal Conduct on Security Clearance Eligibility Under Guideline E
• Importance of Full Disclosure in Security Clearance Applications