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Summary

This case concerns a 52-year-old ship's engineer whose security clearance eligibility was reviewed under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The government raised concerns regarding a bankruptcy filing and multiple instances of past-due federal and state taxes, as well as the omission of tax liens from his security clearance application.

Specifically, the allegations included a bankruptcy (1.a), several past-due federal and state tax obligations (1.b through 1.f), and a personal financial statement showing a $2,298 net monthly remainder (1.g). Additionally, a concern was raised under Guideline E (2.a) for the alleged deliberate omission of material facts from his security clearance application.

The judge ultimately granted the security clearance. It was determined that the applicant's bankruptcy discharged the old tax claims, and he demonstrated current financial stability with no recent financial issues. Crucially, the omission of tax liens from his application was found to be inadvertent, not deliberate, mitigating the personal conduct concern.

Why the Applicant Prevailed

• The applicant's bankruptcy discharged federal and state tax claims, mitigating financial concerns.
• The applicant demonstrated current financial stability and a lack of recent financial issues.
• The omission of tax liens on the security clearance application was found to be inadvertent and not deliberate.

Conditions Referenced

Key Rule Quoted

“"It is unlawful to deny or revoke a personnel security clearance solely because of a single bankruptcy."”

Procedural Posture

• SOR issuedMar 7, 2001
• Answer filedMar 26, 2001Applicant elected to have the case decided on a written record.
• Hearing held—No hearing; decided on written record.
• Decision dateDec 17, 2001

Cite For

• Mitigation of Financial Concerns Due to Bankruptcy Discharge
• Inadvertent Omissions on Security Clearance Applications
• Consideration of Current Financial Stability in Clearance Decisions