Summary
The applicant, a 62-year-old contract site manager with a history of military service, faced security clearance denial under Guideline F due to significant unresolved financial issues, including over $100,000 in federal tax liens and multiple delinquent accounts. The judge found that the applicant failed to demonstrate sufficient evidence to mitigate the security concerns stemming from his financial difficulties, which raised doubts about his reliability and judgment.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: a Chapter 13 bankruptcy case filed in 2009, but dismissed by the bankruptcy court in 2010 (1.a). four federal tax liens for tax years 1999, 2002, 2003, and 2006 for $5,708, $101,959, $4,643, and $1,682, respectively (1.b). a state tax lien filed in May 2011 for $5,136 (1.c). $25,571 owed to a state child support agency (1.d). an unpaid judgment for $674 owed to a state agency (1.e). 29 delinquent accounts with various creditors in the total amount of approximately $63,000 (1.f).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The decision turned on the following: The applicant has a history of financial problems, including federal tax liens and back taxes owed to the IRS; The applicant's financial issues are largely unresolved and ongoing, indicating a lack of financial responsibility; The applicant did not present sufficient evidence to mitigate the security concerns related to his financial history.
Why the Applicant Was Denied
- The applicant has a history of financial problems, including federal tax liens and back taxes owed to the IRS.
- The applicant's financial issues are largely unresolved and ongoing, indicating a lack of financial responsibility.
- The applicant did not present sufficient evidence to mitigate the security concerns related to his financial history.
Conditions Referenced
- AG ¶ 19(a)raisedFinancial Considerations
- AG ¶ 19(c)raisedFinancial Considerations
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 issuedNov 3, 2011
- Answer filed—
- Hearing heldMar 12, 2012
- Decision dateApr 26, 2012
Cite For
- Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
- Impact of Financial Irresponsibility on Security Clearance Eligibility
- Insufficient Evidence to Mitigate Financial Concerns in Security Clearance Cases