Summary
The applicant, a 52-year-old employee of a Department of Defense contractor, sought a security clearance under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). He admitted to a history of financial problems, including multiple delinquent debts and a DUI arrest, which he attributed to personal issues stemming from the death of his daughter. The judge denied the application, citing insufficient evidence of financial stability and responsible management of debts.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: In response to section 26, Financial Record, Taxes, Applicant answered, “No” to the following question: “In the past seven (7) years, have you failed to file or pay Federal, state, or other taxes when required by law or ordinance?” He did not list his federal and state tax debts that are alleged in SOR ¶¶ 1.a, 1.s, 1.t, and 1.u (2.a). a $7,684 state tax lien for tax years 2005 and 2006 (1.a). a $374,750 home mortgage that was more than 120 days past due in the amount of $34,125 as of December 20, 2013 (1.b). a second mortgage account placed for collection in the amount of $158,185 (1.c). a $483 account owed to a bank placed for collection (1.d). a $520 account placed for collection (1.e). ten medical accounts placed for collection in the amounts of $491, $370, $245, $221, $155, $129, $125, $125, $110, and $75 (1.f). a $372 account placed for collection (1.g). a $250 account placed for collection by a city government (1.h). a $250 account placed for collection by a city government (1.i). a $3,625 state tax lien for tax year 2012 (1.s). a $54,744 federal tax lien for tax years 2008 and 2009 (1.t). a $13,744 federal tax lien for tax year 2007 (1.u). a $25,000 account owed to a bank that was placed for collection (1.v).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c), AG ¶ 19(f). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d). The decision turned on the following: The applicant has a history of 22 delinquent debts, including significant tax liens and mortgage delinquencies; The applicant failed to demonstrate a consistent effort to resolve his financial issues prior to the hearing; The applicant's previous attempt at Chapter 13 bankruptcy was unsuccessful, raising doubts about his financial management.
Why the Applicant Was Denied
- The applicant has a history of 22 delinquent debts, including significant tax liens and mortgage delinquencies.
- The applicant failed to demonstrate a consistent effort to resolve his financial issues prior to the hearing.
- The applicant's previous attempt at Chapter 13 bankruptcy was unsuccessful, raising doubts about his financial management.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedHistory of Not Meeting Financial Obligations
- AG ¶ 19(f)appliedFinancial Problems Linked to Issues of Security Concern
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlWhile the applicant's financial issues were partly due to reduced income, he did not act responsibly during his separation from his wife.
- AG ¶ 20(c)rejectedReceived Counseling for the ProblemThe applicant's recent bankruptcy filing is too early to conclude that his financial situation is under control.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay CreditorsThe applicant's efforts to resolve debts were insufficient and not timely.
Key Rule Quoted
“Any doubt concerning personnel being considered for access to classified information will be resolved in favor of national security.”
Procedural Posture
- SOR issuedSep 22, 2014
- Answer filedOct 23, 2014
- Hearing heldMay 14, 2015
- Decision dateJun 24, 2015
Cite For
- Denial Based on Extensive Financial Delinquencies Under Guideline F
- Impact of Personal Conduct on Security Clearance Eligibility
- Insufficient Evidence of Financial Rehabilitation and Responsibility