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Summary

The applicant, a 49-year-old single male employed as an Associate Engineer, faced allegations under Guidelines E, F, and J due to financial irresponsibility, failure to file tax returns, and falsification of information on his security clearance application. The judge found that the applicant's conduct demonstrated poor judgment and unreliability, leading to the denial of his security clearance.

Under Guideline E (Personal Conduct), Guideline F (Financial Considerations), and Guideline J (Criminal Conduct), the Statement of Reasons alleged the following: The Government alleges that the Applicant is ineligible for clearance because he intentionally falsified material aspects of his personal background during the clearance screening process (2.a). The Applicant failed to list his 1997 wage garnishment by the State for unpaid taxes for tax year 1994 (2.b). The Applicant failed to list his past and current delinquent debts set forth above (2.c). The Applicant admits that he is indebted to a creditor in the amount of approximately $303.00 for an account delinquent since March 1999. Due to financial hardship, the Applicant has been unable to make the payments. He is not sure when he will contact the creditor (1.a). The Applicant admits that he is indebted to a creditor in the amount of $134.00 for a delinquent account charged off as a bad debt. Due to financial hardship, the Applicant has been unable to make the payments. He is not sure when he will contact the creditor (1.b). The Applicant admits that he is indebted to a creditor in the amount of approximately $428.00 for an account delinquent since March 1999. Due to financial hardship, the Applicant has been unable to make the payments. He is not sure when he will contact the creditor (1.c). The Government alleges that the Applicant is indebted to a creditor in the amount of $302.64 for a delinquent account charged off as a bad debt. The Applicant believes that the debt was referred to collection and then he paid it. However, he has submitted no proof of payment (1.d). The Government alleges that the Applicant is indebted to a creditor in the amount of $303.15 for a delinquent account. The Applicant is not sure whether he owes this debt. There is no evidence to show the Applicant owes this debt. Accordingly this allegation is found for the Applicant (1.e). The Government alleges that the Applicant is indebted to a creditor in the amount of $37.00 for a delinquent account. The Applicant is not sure whether he owes this debt. There is no evidence to show the Applicant owes this debt. Accordingly this allegation is found for the Applicant (1.f). The Applicant admits that he is indebted to a creditor in the amount of $114.67 for a delinquent account charged off as a bad debt in June 1996. Due to financial hardship, the Applicant has been unable to make the payments. He is not sure when he will contact the creditor (1.h). The Applicant admits that he was indebted to a creditor in the amount of $852.07 for a delinquent account since July 1997. The Applicant believes that he negotiated a reduced amount of $300.00 and paid that amount to close the account. However, he has submitted no proof of this payment (1.i). The Applicant's wages were garnished in about July 1997 by the state tax authority for back taxes owed in the amount of $3,646.43 for tax year 1994. (Government Exhibits 3 and 8). The Applicant states that he paid the tax bill, but his wages were garnished for one or two pay periods before the garnishment was stopped (1.j). The Government alleges that the Applicant is ineligible for clearance because he violated the misdemeanor provisions of Title 26, United States Code, Section 7203, and a State's Revised Statute, a felony, by failing to file annual income tax returns, as required (2.a). The Applicant failed to timely file his 1994, 1995 or 1996 Federal and State Income Tax Returns within the time required (2.b). The Applicant states that he does intend to file these income tax returns, but he cannot say for sure when he will do it (2.c). The Applicant states that he has paid the estimated tax required by both the Federal and State taxing authorities. He does not owe them any money (2.d).

The judge denied the clearance. The government raised disqualifying conditions F1, F3, J1, J2, E2. The decision turned on the following: The applicant has a history of financial irresponsibility, including multiple delinquent debts and failure to contact creditors; The applicant failed to file federal and state income tax returns for multiple years, violating tax laws; The applicant intentionally falsified material information on his security clearance application regarding wage garnishments and delinquent debts.

Why the Applicant Was Denied

• The applicant has a history of financial irresponsibility, including multiple delinquent debts and failure to contact creditors.
• The applicant failed to file federal and state income tax returns for multiple years, violating tax laws.
• The applicant intentionally falsified material information on his security clearance application regarding wage garnishments and delinquent debts.

Conditions Referenced

Key Rule Quoted

“The adjudicative process is an examination of a sufficient period of a person's life to make an affirmative determination that the person is an acceptable security risk.”

Procedural Posture

• SOR issuedNov 9, 2001
• Answer filed—Applicant elected to proceed without a hearing.
• Hearing held—Written record only.
• Decision dateApr 29, 2002

Cite For

• Financial Irresponsibility as a Basis for Clearance Denial Under Guideline F
• Failure to File Tax Returns as a Disqualifying Factor Under Guideline J
• Intentional Falsification of Information on Security Clearance Applications Under Guideline E