Summary
A 47-year-old computer applications engineer was denied a security clearance under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The denial stemmed from a history of financial irresponsibility, including a Chapter 13 bankruptcy and a failure to file federal tax returns for multiple years.
Specifically, the applicant failed to file federal taxes for tax years 2004, 2005, 2010, 2011, and 2012. Additionally, when asked on the e-QIP if he was delinquent on any federal debt, he responded "no," despite having unpaid federal taxes for 2004, 2005, 2010, and 2011. His Chapter 13 bankruptcy, filed in August 2012, faced a motion to dismiss from the trustee due to the applicant being in arrears on payments and the IRS filing a claim for unpaid 2012 taxes.
The judge found that these financial issues raised significant concerns about the applicant's reliability and trustworthiness. Although mitigating conditions were considered, the applicant provided insufficient evidence of a good-faith effort to resolve his financial obligations, leading to the denial of his security clearance.
Why the applicant was denied
- The applicant failed to timely file federal tax returns for multiple years, indicating a lack of financial responsibility.
- The applicant's Chapter 13 bankruptcy was in arrears, and the trustee filed a motion to dismiss due to non-payment.
- The applicant provided insufficient evidence to demonstrate a good-faith effort to resolve his financial obligations.
Conditions referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(g)raisedFailure to File Annual Federal, State, or Local Income Tax Returns as Required
- AG ¶ 16(a)raisedDeliberate Omission, Concealment, or Falsification of Relevant Facts
- AG ¶ 20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- AG ¶ 20(b)rejectedThe Conditions That Resulted in the Financial Problems Were Largely Beyond the Person’s Control
- AG ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the Problem
- AG ¶ 20(d)rejectedThe Individual Has Initiated a Good-faith Effort to Repay the Overdue Creditors
Key rule quoted
“The protection of the national security is the paramount consideration.”
Procedural posture
- SOR issuedAug 28, 2013
- Answer filedOct 2, 2013undated response
- Hearing heldNov 19, 2013
- Decision dateJan 28, 2014
Cite for
- Denial of Security Clearance Due to Financial Irresponsibility Under Guideline F
- Impact of Personal Conduct on Security Clearance Eligibility Under Guideline E
- Requirements for Demonstrating Good-faith Efforts to Resolve Financial Obligations