Summary
The applicant, a 45-year-old federal employee, faced security clearance denial under Guideline F due to significant financial issues, including failure to pay federal and state taxes, property taxes, and other debts. The judge found the applicant's testimony lacked credibility and noted a pattern of intentional tax evasion and poor financial management, which raised concerns about his reliability and trustworthiness.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: owes $11,588 in federal income taxes for tax year 2007 (1.a). owes $65,040 in federal income taxes for tax years 2004, 2005, and 2006 (1.b). owes $1,380 in state income taxes for tax years 1999, 2000, and 2001 (1.c). owes $22,165 in federal income taxes for tax year 2002 (1.d). not alleged (1.e). judgment for contempt of court, $4,563 (1.f). judgment for contempt of court, $3,422 (1.g). owes $91 for a civil judgment (1.h). owes $1,622 for phone services (1.i). owes $644 for credit card debt (1.j). owes $13,000 for deficiency on a loan for a stolen vehicle (1.k). owes $30 for credit card debt (1.l).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c), AG ¶ 19(d). The decision turned on the following: Applicant failed to provide credible evidence of resolving his financial obligations; Applicant intentionally evaded paying federal and state taxes for many years despite knowing it was wrong; Applicant's financial issues were extensive, serious, and indicative of poor judgment.
Why the Applicant Was Denied
- Applicant failed to provide credible evidence of resolving his financial obligations.
- Applicant intentionally evaded paying federal and state taxes for many years despite knowing it was wrong.
- Applicant's financial issues were extensive, serious, and indicative of poor judgment.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 19(d)appliedDeceptive or Illegal Financial Practices
Key Rule Quoted
“Failure or inability to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness and ability to protect classified information.”
Procedural Posture
- SOR issuedMay 13, 2009
- Answer filedMay 30, 2009
- Hearing heldSep 22, 2009
- Decision dateOct 23, 2009
Cite For
- Denial of Security Clearance Due to Significant Financial Issues Under Guideline F
- Credibility of Applicant's Testimony Regarding Financial Obligations
- Pattern of Intentional Tax Evasion as a Disqualifying Factor