Summary
The applicant, a 61-year-old defense contractor with a history of financial difficulties, faced security concerns under Guideline F due to multiple unpaid debts and failure to file tax returns from 2004 to 2014. Despite some mitigating factors, including a resolved state tax lien, the judge found insufficient evidence of responsible financial management, leading to a denial of security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: three delinquent medical debts ($112, $109; $49) (1.a). three delinquent medical debts ($112, $109; $49) (1.b). three delinquent medical debts ($112, $109; $49) (1.c). state tax lien ($7,780) (1.d). federal tax lien ($167,000) (1.e). unpaid judgment ($97,610) (1.f). collection account for a second mortgage ($111,300) (1.g). collection or charged-off consumer accounts ($394) (1.h). collection or charged-off consumer accounts ($500) (1.i). collection or charged-off consumer accounts ($263) (1.j). collection or charged-off consumer accounts ($82) (1.k). collection or charged-off consumer accounts ($1,455) (1.l). failure to file federal and state tax returns from 2004 to 2014 (1.m).
The judge denied the clearance. The government raised disqualifying conditions F.1.a, F.1.b, F.1.c, F.1.f. The judge applied mitigating conditions F.2.a, F.2.b, F.2.c, F.2.d, F.2.e, F.2.g. The decision turned on the following: Applicant has multiple unresolved debts totaling $386,654; Applicant failed to file federal and state tax returns for ten years, raising significant concerns about reliability and trustworthiness; The applicant's financial problems are not under control, with no established repayment plan for most debts.
Why the Applicant Was Denied
- Applicant has multiple unresolved debts totaling $386,654.
- Applicant failed to file federal and state tax returns for ten years, raising significant concerns about reliability and trustworthiness.
- The applicant's financial problems are not under control, with no established repayment plan for most debts.
Conditions Referenced
- F.1.araisedInability to Satisfy Debts
- F.1.braisedUnwillingness to Satisfy Debts
- F.1.craisedHistory of Not Meeting Financial Obligations
- F.1.fraisedFailure to File or Fraudulently Filing Tax Returns
- F.2.arejectedBehavior Occurred Long Ago or Infrequently
- F.2.bappliedCircumstances Beyond the Person's ControlApplicant's unemployment was a circumstance beyond his control, but the decision to adopt three children was a considered choice.
- F.2.cappliedReceiving Financial CounselingApplicant received financial counseling, but debts remain unresolved.
- F.2.drejectedGood-faith Effort to Repay Debts
- F.2.erejectedDispute Legitimacy of Debts
- F.2.grejectedArrangements with Tax Authority
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedJul 24, 2015
- Answer filedAug 18, 2015
- Hearing heldMar 14, 2017
- Decision dateAug 11, 2017
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Impact of Failure to File Tax Returns on Security Clearance Eligibility
- Consideration of Mitigating Factors in Financial Distress Cases