Summary
The applicant, a 42-year-old employee of two defense contractors, faced security clearance denial under Guideline E (Personal Conduct) and Guideline F (Financial Considerations) due to unresolved financial issues and failure to file tax returns. The judge found that the applicant did not provide sufficient evidence to mitigate the security concerns related to her financial obligations and personal conduct.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: This is a combination of child support obligations as well as unpaid arrearages regarding Applicant’s twin daughters that was established by the state department of child support enforcement in 2010. The past-due amount was $29,448 as of March 2015, but that balance increased to $34,003 or $34,131 as of September 2016, depending on the credit report reviewed (1.a). This is an automobile loan with a high credit of $16,243 for a vehicle that Applicant was dissatisfied with, claiming it had a defect. It was also damaged in an accident, so she voluntarily surrendered it to the dealer. It is unclear what happened to the vehicle after it was returned. The account was placed for collection in 2009, and $7,742 was charged off (1.b). This is an automobile loan with a high credit of $15,876 for a vehicle that was repossessed, and $15,341 was charged off, leaving an unpaid balance of $5,041 (1.c). These are various medical accounts with unidentified medical providers with outstanding balances of $2,295, $958, $571, $551, $373, and $324 that were placed for collection (1.d). This is a bank credit card account with a $1,500 credit limit that became past-due, was placed for collection, and $1,843 was charged off (1.e). These are student loan accounts with past-due balances of $1,562, $1,359, $2,030, and $1,334 that were placed for collection (1.f). This is a note loan with a high credit of $768 and a past-due and unpaid balance of $514 that was charged off and placed for collection. In 2010, the creditor obtained a judgment for $514, and that account was then sold to a debt purchaser (1.h). This is a cellular telephone account with a past-due and unpaid balance of $565 that was placed for collection. The account was sold to a debt purchaser and a settlement agreement was eventually reached calling for a one-time payment of $186.40 (1.k). This is a cellular telephone account with a past-due and unpaid balance of $513 that was placed for collection. A settlement agreement was eventually reached with the collection agent calling for a payment of $359.34 (1.m). This is a mattress store account with a past-due and unpaid balance of $286 that was placed for collection and sold to a debt purchaser (1.p). This is an Internet cable or television account with an alleged unpaid balance of $285 that was placed for collection. The February 2016 credit report clearly reflects that the account has a zero balance (1.q). This is a residential lease with a past-due and unpaid balance of $2,200 which arose in 2011. The landlord-creditors obtained a judgment for $2,545 in August 2011 (1.v). You failed to file your federal and state income taxes, as required, for tax years 2012, 2013, 2014, and 2015 (1.w). You are indebted to your attorney in the approximate amount of $22,000. As of the date of your hearing, September 20, 2016, this debt remains delinquent (1.x).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 20, AG ¶ 15. The decision turned on the following: The applicant failed to file federal and state income tax returns for the years 2012, 2013, 2014, and 2015; The applicant had numerous delinquent debts totaling approximately $83,869, with insufficient evidence of resolution or payment; The applicant did not provide documentation to support claims of payments made towards her debts.
Why the Applicant Was Denied
- The applicant failed to file federal and state income tax returns for the years 2012, 2013, 2014, and 2015.
- The applicant had numerous delinquent debts totaling approximately $83,869, with insufficient evidence of resolution or payment.
- The applicant did not provide documentation to support claims of payments made towards her debts.
Conditions Referenced
- AG ¶ 20raisedFinancial Considerations
- AG ¶ 15raisedPersonal Conduct
Key Rule Quoted
“The security clearance process is designed to ensure that individuals granted access to classified information are trustworthy and reliable, and that they do not pose a risk to national security.”
Procedural Posture
- SOR issuedDec 7, 2015
- Answer filedJan 5, 2016
- Hearing heldSep 20, 2016
- Decision dateSep 28, 2017
Cite For
- Failure to Mitigate Financial Obligations Under Guideline F
- Failure to File Tax Returns as a Disqualifying Condition Under Guideline E
- Insufficient Evidence of Financial Responsibility Affecting Security Clearance Eligibility.