Summary
The applicant, a 49-year-old machinist employed by a defense contractor, faced security concerns under Guideline F (Financial Considerations) due to multiple bankruptcies and significant tax debts. Despite some mitigating circumstances, the judge found that the applicant's financial irresponsibility and ongoing debts raised serious questions about his reliability and trustworthiness, leading to a denial of his security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: state tax lien filed in July 2012 for $9,888 (1.a). state tax lien filed in May 2010 for $4,296 (1.b). state tax lien filed in April 2010 for $5,710 (1.c). debt to tax preparation service charged off for $648 (1.d). deficiency after a vehicle repossession placed for collection of $13,009 (1.e). debt to finance company placed for collection of $13,463 (1.f). student loans placed for collection of $2,042 (1.g). student loans placed for collection of $2,333 (1.h). student loans placed for collection of $2,625 (1.i). student loans placed for collection of $4,000 (1.j). debt to finance company charged off for $5,678 (1.l). medical debts placed for collection of $311 (1.m). medical debts placed for collection of $189 (1.n). medical debts placed for collection of $185 (1.o). medical debts placed for collection of $118 (1.p). medical debts placed for collection of $51 (1.q). Chapter 7 bankruptcy filed in May 2001 and a discharge granted in September 2001 (1.t). delinquent federal income taxes for tax years 2008 through 2012 totaling about $42,000 (1.u). delinquent state taxes for tax years 2008 through 2013 totaling about $5,000 (1.v). delinquent state taxes for tax year 2014 of about $250 (1.w).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(d). The decision turned on the following: The applicant has a history of multiple bankruptcies and significant tax debts; The applicant's financial problems were not under control, as he was living paycheck to paycheck and had not resolved his federal and state tax debts; The applicant's actions, including manipulating tax exemptions, indicated poor judgment and irresponsibility.
Why the Applicant Was Denied
- The applicant has a history of multiple bankruptcies and significant tax debts.
- The applicant's financial problems were not under control, as he was living paycheck to paycheck and had not resolved his federal and state tax debts.
- The applicant's actions, including manipulating tax exemptions, indicated poor judgment and irresponsibility.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlWhile some conditions were beyond the applicant's control, the largest debt was due to his own actions.
- AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue CreditorsEstablished for student loans, but not for other debts.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the AG.”
Procedural Posture
- SOR issuedJan 15, 2015
- Answer filedMay 16, 2015
- Hearing heldAug 19, 2016Rescheduled from June 8, 2016 at applicant's request.
- Decision dateOct 28, 2016
Cite For
- Financial Irresponsibility Under Guideline F
- Impact of Multiple Bankruptcies on Security Clearance Eligibility
- Consideration of Mitigating Conditions in Financial Cases