Summary
The applicant, a 52-year-old defense contractor, faced security clearance denial under Guideline F due to significant financial issues, including overdue debts and failure to file multiple tax returns. Despite some debts being resolved, the applicant's willful failure to file taxes was deemed irresponsible, leading to the conclusion that he did not mitigate the government's financial concerns.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: This overdue debt is cited in the SOR in the amount of $1,553 for a judgement entered against him by City A in May 2008 (1.a). This overdue debt is cited in the SOR in the amount of $1,133 for a lien from State A (1.b). This overdue debt is cited in the SOR in the amount of $5,000 for a lien from State A (1.c). This overdue debt is cited in the SOR in the amount of $1,150 for a lien from State A (1.d). This overdue debt is cited in the SOR in the amount of $80.96 for a check issued by Applicant with insufficient funds (1.e). This overdue debt is cited in the SOR in the amount of $136,000 for a defaulted mortgage account (1.f). This overdue debt is cited in the SOR in the amount of $1,293,000 for a defaulted mortgage account (1.g). This overdue debt is cited in the SOR in the amount of $78 for a medical collection account (1.h). The SOR alleges that Applicant failed to file State A tax returns for tax years 2008, 2009, 2010, and 2011 (1.i). The SOR alleges that Applicant failed to file Federal tax returns for tax years 2005, 2006, 2007, 2008, and 2009 (1.j).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c), AG ¶ 19(g). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(d). The decision turned on the following: The applicant failed to file Federal and state tax returns for multiple years, demonstrating a lack of responsibility; The applicant has a history of not meeting financial obligations, including overdue debts and liens; The applicant's financial problems were not sufficiently mitigated by circumstances beyond his control.
Why the Applicant Was Denied
- The applicant failed to file Federal and state tax returns for multiple years, demonstrating a lack of responsibility.
- The applicant has a history of not meeting financial obligations, including overdue debts and liens.
- The applicant's financial problems were not sufficiently mitigated by circumstances beyond his control.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedHistory of Not Meeting Financial Obligations
- AG ¶ 19(g)appliedFailure to File Annual Federal, State or Local Income Tax Returns as Required
- AG ¶ 20(b)rejectedConditions Beyond the Person's ControlThe applicant's financial issues were not sufficiently mitigated as many debts were resolved through liens and foreclosures.
- AG ¶ 20(d)rejectedThe Individual Has Made Efforts to Repay Overdue DebtsThe applicant's debts were resolved through foreclosures, and he failed to file tax returns.
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 issuedFeb 28, 2013
- Answer filedMar 27, 2013
- Hearing heldJun 13, 2013
- Decision dateSep 19, 2013
Cite For
- Failure to File Tax Returns as a Disqualifying Condition Under Guideline F
- Inability to Satisfy Debts as a Disqualifying Condition Under Guideline F
- Whole-person Concept Applied in Evaluating Financial Responsibility