Summary
A 63-year-old defense contractor and U.S. Air Force veteran was denied a security clearance due to unresolved financial issues, specifically under Guideline F (Financial Considerations). While initial concerns also included Guideline E (Personal Conduct), these were ultimately mitigated.
The Statement of Reasons cited the applicant's failure to pay his 1990 state income tax for nearly two decades. Although a $128 medical debt was also mentioned, it was determined not to raise any disqualifying conditions. The primary disqualifying conditions raised were F.1.a and F.1.c, pertaining to a history of not meeting financial obligations and an inability or unwillingness to satisfy debts.
Despite the application of mitigating conditions F.2.a, F.2.b, F.2.c, and F.2.d, the clearance was denied. The decision highlighted a long-standing state tax lien exceeding $15,000 and a general history of failing to meet financial obligations. The applicant had only recently begun to address the tax issues and had not demonstrated a sufficient good-faith effort to resolve his outstanding debts.
Why the Applicant Was Denied
- The applicant has a long-standing state tax lien of over $15,000 and a history of not meeting financial obligations.
- The applicant only recently began addressing his tax issues and has not demonstrated a good-faith effort to resolve his debts.
Conditions Referenced
- F.1.araisedInability or Unwillingness to Satisfy Debts
- F.1.craisedA History of Not Meeting Financial Obligations
- F.2.arejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurThe applicant's financial issues are current and ongoing.
- F.2.brejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThere is no evidence that the applicant's tax problems resulted from anything beyond his control.
- F.2.crejectedThe Person Has Received or Is Receiving Counseling for the ProblemNo evidence of counseling was presented.
- F.2.drejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsOne payment of $500 made after the hearing is insufficient to qualify as a good-faith effort.
Key Rule Quoted
“A person who seeks access to classified information enters into a fiduciary relationship with the Government predicated upon trust and confidence.”
Procedural Posture
- SOR issuedOct 13, 2009
- Answer filedNov 10, 2009
- Hearing heldFeb 22, 2010
- Decision dateApr 22, 2010
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Impact of Long-standing Tax Issues on Security Clearance Eligibility
- Mitigation of Personal Conduct Concerns Despite Financial Issues