Summary
A 53-year-old married defense contractor was denied a security clearance due to concerns under Guideline C (Foreign Preference), Guideline E (Personal Conduct), and Guideline F (Financial Considerations). The applicant, born in Costa Rica, became a naturalized U.S. citizen in 1973, at which point he lost his Costa Rican citizenship. In 2009, after Costa Rican law changed to allow dual citizenship, the applicant, at his mother's request, reclaimed Costa Rican citizenship and received an identification card, which he later surrendered in 2011.
The applicant also faced allegations of questionable personal conduct for failing to timely file his 2008 and 2009 state and federal tax returns, though he eventually filed them and received refunds. Financially, he had several past due debts, including one for $2,290 and another for $1,195, both of which he paid. However, he had unresolved debts totaling approximately $24,327, including two confusing time-share accounts and a maintenance fee.
Despite demonstrating some intent to resolve debts and renouncing his Costa Rican identification, the clearance was denied. The decision cited the applicant's approximately $24,327 in unresolved debts, his failure to timely file multiple tax returns, and his use of tax refunds for personal vacations instead of debt resolution, all indicating poor judgment and financial mismanagement.
Why the applicant was denied
- The applicant had approximately $24,327 in unresolved debts, raising concerns about financial reliability.
- The applicant failed to file multiple tax returns in a timely manner, indicating questionable judgment and lack of compliance with regulations.
- The applicant's decision to use tax refunds for personal vacations instead of resolving debts demonstrated poor judgment.
Conditions referenced
- F.19(a)raisedInability or Unwillingness to Satisfy Debts
- F.19(c)raisedA History of Not Meeting Financial Obligations
- F.19(g)raisedFailure to File Annual Federal, State, or Local Income Tax Returns as Required
- E.16(c)raisedCredible Adverse Information in Several Adjudicative Areas
- C.9(b)raisedAction to Acquire or Obtain Recognition of Foreign Citizenship by an American Citizen
- F.20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurThe applicant's financial issues are ongoing and unresolved.
- F.20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant did not sufficiently explain how past circumstances continue to affect his current financial situation.
- F.20(d)rejectedThe Individual Has Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant has not made a good-faith effort to resolve all debts.
- E.17(d)appliedThe Individual Has Acknowledged the Behavior and Obtained Counseling to Change the BehaviorThe applicant acknowledged his tax filing issues and expressed intent to comply in the future.
- C.11(b)appliedThe Individual Has Expressed a Willingness to Renounce Dual CitizenshipThe applicant surrendered his Costa Rican identification document and expressed intent to renounce citizenship.
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 issuedApr 8, 2011
- Answer filedMay 26, 2011
- Hearing heldAug 23, 2011
- Decision dateFeb 29, 2012
Cite for
- Financial Reliability Concerns Under Guideline F
- Personal Conduct Issues Related to Tax Compliance Under Guideline E
- Foreign Preference Implications Under Guideline C