Summary
A 60-year-old retired military officer and defense contractor was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The Statement of Reasons alleged the applicant intentionally falsified his SF 86 by failing to disclose tax liens and other financial issues. It also cited a history of tax problems, including an IRS lien for $22,952 filed in March 2008 and another for $18,957 filed in February 2010.
While the judge found the applicant successfully refuted the personal conduct concerns, he did not mitigate the financial issues. Disqualifying conditions under Guideline F were raised, though several mitigating conditions were also considered.
The denial was based on the applicant's history of financial problems, including a foreclosure and unpaid taxes, which were deemed recent and ongoing. The judge concluded that these issues cast doubt on the applicant's reliability and judgment, and he failed to provide sufficient evidence of compliance with tax obligations or a good-faith effort to resolve his debts.
Why the Applicant Was Denied
- The applicant has a history of financial problems, including a foreclosure and unpaid taxes, which raised security concerns.
- The applicant's financial issues were recent and ongoing, casting doubt on his reliability and judgment.
- The applicant did not provide sufficient evidence to demonstrate compliance with his tax obligations or a good-faith effort to resolve his debts.
Conditions Referenced
- F.19.araisedInability to Satisfy Debts
- F.19.braisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- F.19.craisedA History of Not Meeting Financial Obligations
- F.19.fraisedFailure to File or Fraudulently Filing Annual Federal, State, or Local Income Tax Returns or Failure to Pay Annual Federal, State, or Local Income Tax as Required
- 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 Individual Has Received or Is Receiving Financial Counseling
- F.20.drejectedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors
- F.20.grejectedThe Individual Has Made Arrangements with the Appropriate Tax Authority to File or Pay the Amount Owed
Key Rule Quoted
“A person who fails repeatedly to fulfill his or her legal obligations, such as paying taxes when due, does not demonstrate the high degree of judgment and reliability required of those granted access to classified information.”
Procedural Posture
- SOR issuedJun 29, 2016
- Answer filedJul 28, 2016Applicant elected to have the case decided on the written record.
- Hearing held—No hearing; case decided on written record.
- Decision dateOct 10, 2017
Cite For
- Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
- Insufficient Evidence of Good-faith Efforts to Resolve Debts
- Refutation of Personal Conduct Concerns Under Guideline E