Summary
A 52-year-old marketing manager seeking a public trust position was denied a security clearance due to unmitigated financial concerns under Guideline F (Financial Considerations). The applicant had a history of significant unpaid debts, including a federal tax lien from June 2016 for approximately $51,184.00, a state tax lien from 2015 for approximately $13,962.00, and a judgment from 2014 for approximately $26,473.00, all of which remained unpaid as of the Statement of Reasons. Additionally, a charged-off account for approximately $2,075.00 was also unpaid.
The applicant had filed for Chapter 7 Bankruptcy in October 1992, which was discharged in February 1993. A second bankruptcy, a Chapter 13 filing in 2014, was converted to Chapter 7 and discharged in 2015. The applicant failed to disclose the 2015 state tax lien and the 2014 judgment on his June 2015 SF-86, claiming unawareness of both.
While concerns under Guideline E (Personal Conduct) were mitigated because the applicant did not intentionally falsify information, the applicant did not provide sufficient evidence of financial responsibility or resolution of his debts. The significant unpaid debts and multiple bankruptcies raised unmitigated trustworthiness concerns, leading to the denial of the security clearance.
Why the Applicant Was Denied
- The applicant failed to provide sufficient evidence of financial responsibility or resolution of debts.
- Significant unpaid debts, including a federal tax lien and multiple bankruptcies, raised trustworthiness concerns.
Conditions Referenced
- F.19(a)raisedInability to Satisfy Debts
- F.19(c)raisedA History of Not Meeting Financial Obligations
- F.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
- E.20(a)rejectedThe 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
- E.20(b)rejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- E.20(c)rejectedThe Individual Has Received or Is Receiving Financial Counseling for the Problem From a Legitimate and Credible Source
- E.20(d)rejectedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- E.20(e)rejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt Which Is the Cause of the Problem
- E.20(g)rejectedThe 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
“"A person who seeks access to sensitive information enters into a fiduciary relationship with the Government predicated upon trust and confidence."”
Procedural Posture
- SOR issuedJan 7, 2017
- Answer filedFeb 6, 2017Applicant elected to have the case decided on the written record.
- Hearing held—No hearing; decided on written record.
- Decision dateMar 7, 2018
Cite For
- Failure to Mitigate Financial Considerations Under Guideline F
- Mitigation of Personal Conduct Concerns Under Guideline E
- Burden of Proof on Applicant to Demonstrate Financial Responsibility