Summary
The Applicant, a 51-year-old defense contractor, faced issues under Guideline E (Personal Conduct) and Guideline F (Financial Considerations) due to approximately $29,000 in debts, including a significant IRS tax lien of about $20,600. Despite some debts being paid through garnishment, the Applicant provided false information on her security clearance application regarding her financial delinquencies. The judge found insufficient evidence to mitigate the security concerns stemming from the IRS debt and the falsifications, resulting in a denial of the security clearance.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: In March 2000, the Applicant completed a Standard Form 86 and gave false answers when asked about delinquencies of more than 180 days and tax liens (2.a). The Applicant indicates her responses were in error due to poor instructions and directions in completing the form. She states she did not intend to mislead anyone or falsify her form (2.b). The Applicant owes the IRS approximately $20,660.36 for tax years 1990, 1994, 1996, and 1997 (1.a). In March 2002, a wage garnishment was commenced to collect a $4,670.00 student loan (1.b). In March 2002, a second wage garnishment was commenced to collect $4,206.00 in other student loans (1.c). As of January 2001, the Applicant's net remainder of her monthly income less monthly expenses was $2.80 (1.d).
The judge denied the clearance. The government raised disqualifying conditions E2.A6.1.2.1, E2.A6.1.2.3, E2.A5.1.2.3. The judge applied mitigating conditions E2.A6.1.3.6. The decision turned on the following: The Applicant provided false answers on the SF 86 regarding financial delinquencies and tax liens; The Applicant failed to demonstrate a good-faith effort to repay the IRS debt, lacking evidence of payments made; The Applicant's financial difficulties were ongoing and not isolated incidents, raising concerns about her reliability and trustworthiness.
Why the applicant was denied
- The Applicant provided false answers on the SF 86 regarding financial delinquencies and tax liens.
- The Applicant failed to demonstrate a good-faith effort to repay the IRS debt, lacking evidence of payments made.
- The Applicant's financial difficulties were ongoing and not isolated incidents, raising concerns about her reliability and trustworthiness.
Conditions referenced
- E2.A6.1.2.1raisedA History of Not Meeting Financial Obligations.
- E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts.
- E2.A5.1.2.3raisedDeliberately Providing False or Misleading Information Concerning Relevant and Material Matters.
- E2.A6.1.3.6appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts.
Key rule quoted
“The awarding of a security clearance is not a one time occurrence, but is based on current disqualifying and mitigating conditions.”
Procedural posture
- SOR issuedMay 17, 2002
- Answer filedOct 11, 2002Applicant elected to have the case decided on the written record.
- Hearing held—No hearing; decision based on written record.
- Decision dateMar 26, 2003
Cite for
- False Statements on Security Clearance Applications Under Guideline E
- Ongoing Financial Difficulties Impacting Security Clearance Under Guideline F
- Good-faith Efforts to Repay Debts May Mitigate Some Concerns but Not All.