Summary
The applicant, a 56-year-old defense contractor, faced security clearance denial under Guidelines E (Personal Conduct) and F (Financial Considerations) due to significant financial issues and false statements made during the clearance process. The judge found that the applicant's financial difficulties were longstanding and unresolved, and that he intentionally provided false information on his e-QIP regarding his tax filings and debts.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant made false statements to the Department of Defense during the clearance screening process (2.a). Applicant answered 'No' to the question regarding any other instances in the past seven years where he failed to file or pay Federal, state or other taxes when required by law or ordinance, which was false (2.b). Applicant admitted owing this past-due debt to a bank in the amount of $31,829 (1.a). Applicant admitted owing this charged-off credit card debt in the amount of $17,897 (1.b). Applicant admitted owing a past-due debt to a bank in the amount of $15,830 (1.c). Applicant admitted owing this past-due medical debt in the amount of $2,116 (1.d). Applicant denied owing this past-due credit card debt in the amount of $1,101 (1.e). Applicant admitted owing this past-due medical debt in the approximate amount of $415 (1.f). Applicant admitted owing this past-due medical debt in the approximate amount of $374 (1.g). Applicant admitted owing this past-due medical debt in the approximate amount of $236 (1.h). Applicant admitted owing this past-due medical debt in the approximate amount of $159 (1.i). Applicant admitted owing this past-due medical debt in the approximate amount of $115 (1.j). Applicant admitted owing this past-due medical debt in the approximate amount of $80 (1.k). Applicant denied owing this past-due medical debt in the amount of $97 (1.l). Applicant denied owing this past-due medical debt in the amount of $183 (1.m). Applicant admitted owing this past-due medical debt in the amount of $369 (1.n). Applicant admitted that he had not filed his 2012 and 2013 Federal and state tax returns in a timely fashion (1.o). Applicant admitted that he owed the Internal Revenue Service (IRS) $9,000 for tax year 2009 (1.p). Applicant denied that he was being garnished by his state taxing authority for back taxes (1.q).
The judge denied the clearance. The government raised disqualifying conditions F.1, E.2. The decision turned on the following: The applicant had over $79,000 in past-due debts, indicating financial irresponsibility; The applicant intentionally provided false information on his e-QIP regarding his tax filings and debts; The applicant failed to demonstrate sufficient evidence of financial counseling or a plan to resolve his debts.
Why the Applicant Was Denied
- The applicant had over $79,000 in past-due debts, indicating financial irresponsibility.
- The applicant intentionally provided false information on his e-QIP regarding his tax filings and debts.
- The applicant failed to demonstrate sufficient evidence of financial counseling or a plan to resolve his debts.
Conditions Referenced
- F.1raisedFinancial Considerations
- E.2raisedPersonal Conduct
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 issuedDec 5, 2014
- Answer filedJan 19, 2015
- Hearing heldMay 7, 2015
- Decision dateSep 28, 2015
Cite For
- Financial Irresponsibility Leading to Security Clearance Denial
- Intentional False Statements on E-qip Affecting Clearance Eligibility
- Longstanding Financial Issues as a Disqualifying Factor Under Guideline F