Summary
Darlene D. Lokey Anderson, Administrative Judge, denied the security clearance application of a 31-year-old defense contractor due to significant financial issues under Guideline F. The applicant failed to file federal income tax returns from 2010 to 2014 and had multiple delinquent debts and unpaid tax liens. The judge found no evidence of mitigation or responsible financial behavior, concluding that the applicant's financial distress raised serious questions about his reliability and trustworthiness.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant failed to timely file his Federal income tax returns for tax years 2010 through at least 2014, as required by law. There is no evidence that they have been filed (1.a). Applicant is indebted to a creditor for an account that was charged off in the amount of approximately $14,900. The account remains owing (1.b). Applicant is indebted to a creditor for an account that was charged off in the approximate amount of $9,417. The account remains owing (1.c). Applicant is indebted to a creditor for an account that was placed for collection in the approximate amount of $150. The account remains owing (1.d). Applicant is indebted to a creditor for an account that was placed for collection in the approximate amount of $140. The account remains owing (1.e). Applicant is indebted to a creditor for an account that was placed for collection in the approximate amount of $124. The account remains owing (1.f). Applicant is indebted to a creditor for an account that was placed for collection in the approximate amount of $77. The account remains owing (1.g). Applicant is indebted to a state for a tax lien entered against him in December 2006 in the approximate amount of $124. The account remains owing (1.h). Applicant is indebted to a state for a tax lien entered against him in May 2006 in the approximate amount of $124. The account remains owing (1.i). Applicant is indebted to a creditor for an account that was placed for collection in the approximate amount of $129. The account remains owing (1.j).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(b), AG ¶ 19(c), AG ¶ 19(g). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d). The decision turned on the following: Applicant failed to file federal income tax returns for tax years 2010 to 2014; Applicant has multiple delinquent debts and unpaid tax liens that remain outstanding; No evidence was provided to demonstrate mitigation of financial issues.
Why the Applicant Was Denied
- Applicant failed to file federal income tax returns for tax years 2010 to 2014.
- Applicant has multiple delinquent debts and unpaid tax liens that remain outstanding.
- No evidence was provided to demonstrate mitigation of financial issues.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(b)raisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(g)raisedFailure to File Annual Federal, State, or Local Income Tax Returns as Required
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to Recur
- AG ¶ 20(b)rejectedConditions That Resulted in Financial Problems Were Largely Beyond the Person's Control
- AG ¶ 20(c)rejectedReceived Financial Counseling From a Legitimate Source
- AG ¶ 20(d)rejectedInitiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors
Key Rule Quoted
“Failure to live within one's means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual's reliability, trustworthiness, and ability to protect classified or sensitive information.”
Procedural Posture
- SOR issuedJul 21, 2017
- Answer filedJul 25, 2017Applicant requested a decision on the written record.
- Hearing held—No hearing; decision made on the written record.
- Decision dateFeb 20, 2018
Cite For
- Denial of Security Clearance Due to Failure to File Tax Returns Under Guideline F
- Significant Financial Issues as a Disqualifying Condition
- Lack of Evidence for Mitigation of Financial Distress