Summary
A 41-year-old information technology expert was denied a security clearance due to unmitigated concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). While issues under Guideline J (Criminal Conduct) were mitigated, the judge found the remaining concerns sufficient for denial.
The applicant faced allegations including a November 2015 tax lien for $4,929 and approximately $48,830 in federal income tax debt for tax years 2004, 2007-2010, and 2012-2014. He also failed to timely file federal and state tax returns for multiple years between 2010 and 2015. Additionally, the applicant did not disclose on his March 24, 2014, Security Clearance Application that he had failed to file some federal and state income tax returns in the preceding seven years.
Criminal conduct allegations included a December 2014 arrest for felony Forgery and Counterfeiting, resulting in a February 2015 guilty plea to misdemeanor Insurance-Producing False Evidence of Insurance, with a $500 fine, $75 victim fee, and $375 in court costs. A separate December 2014 arrest for felony Forgery and Counterfeiting and felony Insurance Certificates-Possession/Sale of Stolen/Counterfeit MCL led to a guilty plea for the misdemeanor charge of No Proof of Vehicle Insurance. The denial was based on the applicant's failure to mitigate significant tax debts and personal conduct issues, including non-disclosure and poor judgment from criminal activity.
Why the Applicant Was Denied
- The applicant failed to mitigate financial concerns related to significant tax debts totaling approximately $48,830.
- The applicant's personal conduct, including failure to disclose tax issues on security clearance applications, raised reliability concerns.
- The applicant's criminal conduct, including a guilty plea for fraudulent activity, indicated poor judgment.
Conditions Referenced
- F.19.araisedInability to Satisfy Debts
- F.19.braisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- F.19.craisedA History of Not Meeting Financial Obligations
- F.19.fraisedFailure 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.2.araisedDeliberate Omission, Concealment, or Falsification of Relevant Facts From Any Personnel Security Questionnaire
- F.20.arejectedThe 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
- F.20.brejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- F.20.drejectedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedMay 9, 2017
- Answer filedMay 22, 2017
- Hearing heldJan 17, 2018via video teleconference, continued without video after 110 minutes due to technical failure.
- Decision dateMar 22, 2018
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations Under Guideline F
- Impact of Criminal Conduct on Security Clearance Eligibility Under Guideline J
- Failure to Disclose Significant Financial Issues on Security Clearance Applications Under Guideline E.