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Summary

The applicant, a 68-year-old mechanical inspector for a defense contractor, faced security concerns under Guideline B (Foreign Influence) and Guideline F (Financial Considerations). While he mitigated concerns related to foreign influence due to a distant relationship with a Chinese national, he failed to resolve significant financial issues, including delinquent accounts and late tax filings, leading to the denial of his security clearance.

Under Guideline B (Foreign Influence) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant is a native-born U.S. citizen. In 2002, during the time Applicant worked for a defense contractor and resided in the Middle East, he met a woman - a citizen of the PRC - who was also working (in the PRC she had a clothing store, and in the Middle East she set up a phone business and a gym and massage business) and residing in the Middle East. In 2003, their relationship evolved from a simple friendship into an intimate boyfriend/girlfriend relationship in which they shared living quarters. That relationship remained intimate until May 2012. During Applicant’s period of unemployment (March 2013 until May 2014), although his relationship with the woman had already diminished when they simply “drifted apart,” he stayed with her brother due to the low cost of living in that area. Applicant moved on to other overseas areas, and, after developing other relationships, the woman returned to the PRC. She returned to the Middle East periodically to renew her visa and visit friends. Although they retain a distant friendly relationship, since about 2013, and they have not seen each other since 2013, their communications were generally limited to periodic holiday and birthday e-mails. Their most recent communication occurred in January 2017 when he received an e-mail from her, but he never responded to it (2.a). This is a home equity line of credit in the amount of $82,907.14 that was past due and charged off in 2013 (1.a). This is a home mortgage account with a high credit of $229,400 and an unpaid balance of $109,952 that was charged off, and the property was involuntarily repossessed (1.b). This is a medical account with an unpaid balance of $69 that was placed for collection in early 2015 (1.c). This is a cellular telephone account with an unpaid balance of $43.26 that was placed for collection in early 2015 (1.d). This refers to Applicant’s failure to timely file his federal income tax returns for the tax years 2010, 2011, 2012, and/or 2013 until May 2014 (1.e).

The judge denied the clearance. The government raised disqualifying conditions AG ¶ 20, AG ¶ 6. The judge applied mitigating conditions AG ¶ 20(d), AG ¶ 6(a). The decision turned on the following: The applicant failed to resolve multiple delinquent accounts totaling approximately $185,941.55; He did not provide timely federal income tax returns for several years, raising concerns about his financial responsibility; The applicant's financial issues were deemed unresolved, and there was no evidence of financial counseling.

Why the Applicant Was Denied

• The applicant failed to resolve multiple delinquent accounts totaling approximately $185,941.55.
• He did not provide timely federal income tax returns for several years, raising concerns about his financial responsibility.
• The applicant's financial issues were deemed unresolved, and there was no evidence of financial counseling.

Conditions Referenced

Key Rule Quoted

“Eligibility for a security clearance and access to classified information is denied.”

Procedural Posture

• SOR issuedAug 12, 2016
• Answer filedSep 15, 2016Applicant elected to have the case decided on the written record.
• Hearing heldAug 21, 2017
• Decision dateJun 7, 2018

Cite For

• Failure to Mitigate Financial Considerations Under Guideline F
• Distant Relationships with Foreign Nationals Under Guideline B
• Impact of Unresolved Financial Issues on Security Clearance Eligibility