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Summary

The applicant, a 48-year-old defense contractor, faced security clearance denial under Guideline E (Personal Conduct) and Guideline F (Financial Considerations) due to significant financial delinquencies exceeding $20,000 and a history of providing false information on his security clearance application. The judge found that the applicant failed to demonstrate responsible financial behavior or provide truthful disclosures regarding his tax obligations and criminal history, leading to concerns about his reliability and trustworthiness.

Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant failed to disclose that he has also failed to file and or pay his Federal and state income taxes for tax years 2008, 2009, 2010 and 2012 (2.a). Applicant responded, 'NO' to whether he had a lien placed against his property for failing to pay taxes or other debts. This was a false answer (2.b). Applicant failed to disclose his other drug charges, in May 1989 and in November 1993; as well as his domestic violence related convictions in March 1994, and September 2006 (2.c). Applicant failed to file and pay his Federal income tax returns for tax years 2007 through 2012, as required (1.a). Applicant failed to file and pay his state tax returns for tax years 2007 through 2012, as required (1.b). Applicant is indebted to a creditor for an account that was placed for collection in the approximate amount of $757 (1.c). Applicant is indebted to a creditor for a medical account that was placed for collection in the approximate amount of $136 (1.d). Applicant is indebted to a creditor for a medical account that was placed for collection in the approximate amount of $100 (1.e). Applicant is indebted to a telephone company for an account that was placed for collection in the approximate amount of $143 (1.f). Applicant is indebted to a creditor for a medical account that was placed for collection in the approximate amount of $1,184 (1.g). Applicant is indebted to a creditor for a medical account that was placed for collection in the approximate amount of $625 (1.h). Applicant is indebted to a creditor for a medical account that was placed for collection in the approximate amount of $343 (1.i). Applicant is indebted to a creditor for an account that was placed for collection in the approximate amount of $49 (1.j).

The judge denied the clearance. The government raised disqualifying conditions F.19(a), F.19(b), F.19(c), F.19(f), E.16(a). The decision turned on the following: The applicant has significant financial delinquencies totaling over $20,000, including unpaid federal and state taxes; The applicant provided false information on his security clearance application regarding his tax delinquencies and criminal history; The applicant failed to provide evidence of efforts to resolve his debts or to substantiate claims of payment plans.

Why the Applicant Was Denied

• The applicant has significant financial delinquencies totaling over $20,000, including unpaid federal and state taxes.
• The applicant provided false information on his security clearance application regarding his tax delinquencies and criminal history.
• The applicant failed to provide evidence of efforts to resolve his debts or to substantiate claims of payment plans.

Conditions Referenced

Key Rule Quoted

“A person who seeks national security eligibility enters into a fiduciary relationship with the Government predicated upon trust and confidence.”

Procedural Posture

• SOR issuedFeb 24, 2017
• Answer filedApr 25, 2017
• Hearing held—Decided on the written record without a hearing.
• Decision dateNov 30, 2017

Cite For

• Denial Based on Significant Financial Delinquencies Under Guideline F
• False Disclosures on Security Clearance Applications Under Guideline E
• Failure to Demonstrate Responsible Financial Behavior as a Security Concern