Summary
The applicant, a 49-year-old federal contractor, faced security clearance concerns under Guidelines E (Personal Conduct) and F (Financial Considerations) due to numerous delinquent debts and a failure to disclose relevant financial information on his security clearance application. Although he refuted the falsification allegation, he did not provide sufficient evidence to mitigate the financial concerns, leading to a denial of his security clearance.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant falsified his SCA by deliberately failing to disclose the delinquent debts alleged in SOR ¶¶ 1.a through 1.n (2.a). federal tax lien for $49,980 (1.a). credit card account charged off in July 2008 for $594 (1.b). credit card account charged off in August 2006 for $2,520 (1.c). deficiency on repossessed automobile, referred for collection in January 2008 for $10,356 (1.d). credit card account referred for collection in September 2007 for $486 (1.e). county tax lien filed in July 2003 for $545 (1.h). judgment for unpaid rent for $545 (1.i). judgment for unpaid rent for $593 (1.j). cell phone bill referred for collection in November 2004 for $610 (1.k). charge account referred for collection in September 2011 for $948 (1.l). charge account referred for collection in September 2005 for $690 (1.m). cell phone bill referred for collection in September 2011 for $486 (1.n).
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(d). The decision turned on the following: The applicant admitted to multiple delinquent debts totaling $68,318, including a federal tax lien for $49,980; He failed to file federal income tax returns for several years and did not demonstrate responsible management of his financial obligations; The applicant's financial issues were ongoing and he did not provide credible evidence of efforts to resolve them.
Why the Applicant Was Denied
- The applicant admitted to multiple delinquent debts totaling $68,318, including a federal tax lien for $49,980.
- He failed to file federal income tax returns for several years and did not demonstrate responsible management of his financial obligations.
- The applicant's financial issues were ongoing and he did not provide credible evidence of efforts to resolve them.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 19(g)appliedFailure to File Annual Federal, State, or Local Income Tax Returns as Required
- AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the AG.”
Procedural Posture
- SOR issuedApr 11, 2013
- Answer filedMay 10, 2013
- Hearing heldSep 20, 2013
- Decision dateOct 28, 2013
Cite For
- Denial Based on Ongoing Financial Irresponsibility Under Guideline F
- Failure to Disclose Relevant Financial Information Under Guideline E
- Consideration of the Whole-person Concept in Security Clearance Determinations