Summary
The applicant, a 38-year-old senior engineer, faced security clearance denial under Guidelines E (Personal Conduct) and F (Financial Considerations) due to significant financial issues, including child support arrears and failure to file tax returns. The judge found that the applicant's financial irresponsibility and failure to meet legal obligations raised serious 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 his arrests in his security clearance application (2.a(i)). Applicant failed to disclose his arrests in his security clearance application (2.a(ii)). Applicant failed to disclose his arrests in his security clearance application (2.a(iii)). Applicant failed to disclose his arrests in his security clearance application (2.a(iv)). failed to timely file his federal and state income tax returns for tax years 2011 through 2014 (1.a). failed to timely file his federal and state income tax returns for tax years 2011 through 2014 (1.b). owed state income taxes of about $2,200 as of the date of the SOR (1.c). judgment for $3,184, filed in June 2013 for delinquent credit-card account (1.d). child support arrearage (1.e). credit-card account placed for collection of $5,224 (1.f). credit-card account charged off for $1,799 (1.g). delinquent loan for motorcycle purchase charged off for $76 (1.h). credit-card account past due for $861, with a total balance of $3,184 (1.i). charge account placed for collection of $584 (1.j). medical debt placed for collection of $203 (1.k). medical debt placed for collection of $92 (1.l). medical debt placed for collection of $69 (1.m). medical debt placed for collection of $60 (1.n). medical debt placed for collection of $30 (1.o). delinquent cellphone bill for $2,151 (1.p).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(b), AG ¶ 19(c), AG ¶ 19(f). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), AG ¶ 20(e), AG ¶ 20(g). The decision turned on the following: The applicant had numerous delinquent debts and failed to file tax returns for multiple years; The applicant's financial issues were exacerbated by his failure to act responsibly regarding his obligations, including child support and tax liabilities; The applicant's explanations for his financial problems did not sufficiently mitigate the concerns raised by his conduct.
Why the Applicant Was Denied
- The applicant had numerous delinquent debts and failed to file tax returns for multiple years.
- The applicant's financial issues were exacerbated by his failure to act responsibly regarding his obligations, including child support and tax liabilities.
- The applicant's explanations for his financial problems did not sufficiently mitigate the concerns raised by his conduct.
Conditions Referenced
- AG ¶ 19(a)appliedInability to Satisfy Debts
- AG ¶ 19(b)appliedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 19(f)appliedFailure 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
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- AG ¶ 20(b)notedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- AG ¶ 20(c)rejectedReceived or Is Receiving Financial Counseling
- AG ¶ 20(d)appliedInitiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors
- AG ¶ 20(e)appliedHas a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt
- AG ¶ 20(g)appliedHas Made Arrangements with the Appropriate Tax Authority to File or Pay the Amount Owed
Key Rule Quoted
“A security clearance adjudication is not a tax-enforcement procedure. It is an evaluation of an individual’s judgment, reliability, and trustworthiness.”
Procedural Posture
- SOR issuedApr 17, 2017
- Answer filedJun 2, 2017
- Hearing heldSep 12, 2017Applicant testified but did not present additional evidence.
- Decision dateDec 28, 2017
Cite For
- Denial of Security Clearance Due to Financial Irresponsibility Under Guideline F
- Impact of Personal Conduct on Security Clearance Eligibility Under Guideline E
- Evaluation of Mitigating Conditions in the Context of Financial Obligations and Legal Compliance