Summary
A 56-year-old defense contractor was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The applicant's financial history included a Chapter 7 bankruptcy in 1987 and multiple outstanding debts totaling approximately $28,600. These debts included a state tax lien from 2004 for about $1,192, a federal tax debt of approximately $14,000, and two judgments against him for about $5,018 each to a surety company. Other debts included medical accounts, a utility bill, and a collections account. Additionally, the applicant failed to file state income tax returns for 1998, 1999, 2000, and 2001.
The applicant also faced personal conduct concerns for omitting significant financial information from his 2008 EQIP. Specifically, he failed to list debts he had acknowledged in a 2003 statement, the 2004 state tax lien, the judgments against him, and other debts over 180 days delinquent. While the applicant denied any intent to mislead the Government, the omission was deemed to reflect questionable judgment and untrustworthiness.
The judge determined that the applicant failed to mitigate these concerns. The applicant's history of financial problems dated back to 1983, and he did not demonstrate a good faith effort to resolve his debts or address his failure to file tax returns. The provision of false information on his EQIP further indicated a lack of candor, leading to the denial of his security clearance.
Why the Applicant Was Denied
- The applicant has a history of financial problems dating back to 1983, including a Chapter 7 bankruptcy and ongoing debts totaling $28,600.
- The applicant failed to file state income tax returns for multiple years and did not demonstrate a good faith effort to resolve his debts.
- The applicant provided false information on his EQIP regarding his financial obligations, indicating a lack of candor.
Conditions Referenced
- F.19.araisedInability or Unwillingness to Satisfy Debts
- F.19.craisedA History of Not Meeting Financial Obligations
- F.19.graisedFailure to File Annual Federal, State, or Local Income Tax Returns as Required
- E.16.araisedDeliberate Omission, Concealment, or Falsification of Relevant Facts
- E.16.craisedCredible Adverse Information in Several Adjudicative Issue Areas
- F.20.arejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- F.20.brejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- F.20.crejectedThe Person Has Received or Is Receiving Counseling for the Problem
- F.20.drejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors
- F.20.erejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt
- E.17.arejectedThe Individual Made Prompt, Good-faith Efforts to Correct the Omission
- E.17.brejectedThe Refusal or Failure to Cooperate Was Caused by Improper Advice
- E.17.crejectedThe Offense Is so Minor or Infrequent That It Is Unlikely to Recur
- E.17.drejectedThe Individual Has Acknowledged the Behavior and Obtained Counseling
- E.17.erejectedThe Individual Has Taken Positive Steps to Reduce Vulnerability
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 issuedMar 8, 2010
- Answer filedApr 22, 2010
- Hearing heldJul 21, 2010
- Decision dateAug 16, 2010
Cite For
- Denial of Security Clearance Due to Financial Instability Under Guideline F
- Lack of Candor in Security Clearance Application Under Guideline E
- Failure to Mitigate Longstanding Financial Obligations and Tax Issues