Summary
A 60-year-old retired military veteran with a master's degree was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The Statement of Reasons alleged the applicant intentionally falsified his SF 86 by failing to report student loans turned over to collections, a 2013 tax lien, and a Chapter 7 bankruptcy.
While the judge determined the applicant did not intentionally falsify information on his SF 86, significant financial issues remained unmitigated. These included defaulted student loans and unpaid taxes. The applicant's Chapter 7 bankruptcy filing was also based on inaccurate information regarding his employment status.
Ultimately, the applicant did not provide sufficient evidence to mitigate these recent and ongoing financial problems. The presence of unaddressed financial issues raised doubts about his reliability and trustworthiness, leading to the denial of his security clearance.
Why the applicant was denied
- The applicant did not demonstrate sufficient evidence to mitigate ongoing financial issues, including defaulted student loans and unpaid taxes.
- The applicant's Chapter 7 bankruptcy was based on inaccurate information regarding his employment status.
- The applicant's financial problems were recent and ongoing, raising doubts about his reliability and trustworthiness.
Conditions referenced
- F1raisedInability to Satisfy Debts
- F2raisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- F4raisedFailure 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
- F1rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur and Does Not Cast Doubt on the Individual’s Current Reliability, Trustworthiness, or Good Judgment
- F2rejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- F3rejectedThe Individual Has Received or Is Receiving Financial Counseling for the Problem From a Legitimate and Credible Source
- F4rejectedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- F5rejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt Which Is the Cause of the Problem
- F6appliedThe Individual Has Made Arrangements with the Appropriate Tax Authority to File or Pay the Amount Owed and Is in Compliance with Those Arrangements
Key rule quoted
“The protection of the national security is the paramount consideration.”
Procedural posture
- SOR issuedAug 20, 2016
- Answer filedSep 17, 2016
- Hearing heldJul 6, 2017
- Decision dateAug 2, 2017
Cite for
- Failure to Mitigate Financial Considerations Under Guideline F
- Impact of Personal Conduct on Financial Considerations
- Consideration of the Whole-person Concept in Security Clearance Decisions