Summary
Applicant, a 55-year-old defense contractor employee, faced security clearance denial due to unresolved financial issues, including two unpaid tax liens and failure to file taxes for 2003 and 2004. While he mitigated concerns under personal conduct, he did not demonstrate financial responsibility or resolution of debts, leading to a denial of clearance.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Phone $72 (1.a). credit card $30,030 (1.b). credit card $16,045 (1.c). credit card $13,881 (1.d). credit card $5,094 (1.e). state tax lien (2005) $4,774 (1.f). state tax lien (2005) $4,964 (1.g). gas bill $129 (1.h). tax returns (2003-2004) not filed (1.i).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c), AG ¶ 19(g). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(a), AG ¶ 20(c), AG ¶ 20(d), AG ¶ 20(e). The decision turned on the following: Applicant has two unpaid tax liens and has not filed tax returns for 2003 and 2004; He did not demonstrate financial responsibility or initiate repayment plans for his debts; The judge found that the financial issues were not mitigated despite the applicant's claims of business-related debts.
Why the Applicant Was Denied
- Applicant has two unpaid tax liens and has not filed tax returns for 2003 and 2004.
- He did not demonstrate financial responsibility or initiate repayment plans for his debts.
- The judge found that the financial issues were not mitigated despite the applicant's claims of business-related debts.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(g)raisedFailure to File Annual Federal, State or Local Income Tax Returns
- AG ¶ 20(b)rejectedConditions That Resulted in the Behavior Were Largely Beyond the Person’s ControlThe applicant's partner's failure to pay bills does not qualify as a condition beyond his control.
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to RecurThe applicant's financial issues are ongoing and unresolved.
- AG ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the ProblemThe applicant has not received financial counseling.
- AG ¶ 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue CreditorsThe applicant has not initiated any repayment plans.
- AG ¶ 20(e)rejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant did not provide sufficient documentation to support his claims.
Key Rule Quoted
“No one has a right to a security clearance and the clearly consistent standard indicates that security clearance determinations should err, if they must, on the side of denials.”
Procedural Posture
- SOR issuedFeb 8, 2007
- Answer filedApr 2, 2007
- Hearing heldAug 7, 2007Hearing convened as scheduled.
- Decision dateSep 12, 2007
Cite For
- Denial of Clearance Due to Unresolved Financial Obligations Under Guideline F
- Mitigation of Personal Conduct Concerns Despite Financial Issues
- Importance of Demonstrating Financial Responsibility for Security Clearance Eligibility