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Summary

The applicant, a 44-year-old computer technician, faced security clearance denial under Guideline E (Personal Conduct) and Guideline F (Financial Considerations) due to significant financial issues, including $47,612 in delinquent debts and failure to disclose tax liens on his security clearance application. The judge found that while the applicant's financial difficulties were partly due to caring for his children, this did not sufficiently mitigate his long-standing financial irresponsibility or his lack of candor in the application process.

Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: In September 2000, Applicant executed a security clearance application (SF 86). In response to question 36, (3) Applicant answered, "no," and failed to list the tax liens filed against him in 1993, 1997, and 1999 (SOR ¶ 2.a) (2.a). In response to question 38 (4) on the same SF 86, Applicant answered, "yes," but only disclosed rent in the amount of $910.00 and child support in the amount of $240.00 (SOR ¶ 2.b) (2.b). In July 2002, Applicant rented a storage unit. By May 2003, he had not paid an overdue balance on the account in the amount of $646.00 and it was transferred to a debt collector. To date, Applicant has not paid or otherwise settled the debt (1.a). In January 2001, Applicant incurred a medical doctor's bill. By August 2002, he had not paid an overdue balance on the account in the amount of $232.00 and it was transferred to a debt collector. To date, Applicant has not paid or otherwise settled the debt (1.b). In June 1998, Applicant incurred a doctor's bill. By August 1999, he had not paid an overdue balance on the account in the amount of $103.00 and it was transferred to a debt collector. To date, Applicant has not paid or otherwise settled the debt (1.c). In September 2000, Applicant incurred a medical laboratory bill in the amount of $126.00. By June 2002, he had not paid the bill and it was transferred to a debt collector. To date, Applicant has not paid or otherwise settled the debt (1.d). In March 1997, Applicant incurred a medical bill in the amount of $145.00. By December 2001, he had not paid the debt and it was transferred to a debt collector. To date, Applicant has not paid or otherwise settled the debt (1.e). In November 1994, Applicant opened an account with a credit card company. By July 1995, he had not paid an overdue balance on the account in the amount of $3,705.00 and it was charged off as a bad debt. To date, Applicant has not paid or otherwise settled the debt (1.f). In September 1996, Applicant opened an account and obtained credit in the amount of $1,135.00. By November 1996, he had not paid the debt and it was transferred to a debt collector. To date, Applicant has not paid or otherwise settled the debt (1.g). In 1995, Applicant became delinquent on four accounts with the county in which he resided and they were transferred to a debt collector. Those accounts in the amount of $487.00 have not been paid or otherwise settled (1.h). In March 2000, Applicant was delinquent in the payment of rent and related charges in the amount of $1,968.83. The debt was subsequently transferred to a debt collector. To date, Applicant has not paid or otherwise settled this debt (1.i). On January 23, 2001, a state court ordered Applicant to pay child support of $200.00 per month plus an additional $40.00 per month to satisfy an arrearage of $8,350.00. The child support was for Applicant's daughter who was born in 1983. The court also directed the garnishment of Applicant's pay to implement the order. To date, Applicant has not fully paid or otherwise settled this debt (1.j). In 1993, 1997, 1999, and 2001, seven federal and state tax liens, totaling $30,715.00, were filed against Applicant. Some portion of this debt that cannot be determined from the record was paid through the garnishment of his pay. To date, Applicant has not fully paid or otherwise settled the debt (1.k).

The judge denied the clearance. The government raised disqualifying conditions E2.A6.1.2.1, E2.A6.1.2.3, E2.A5.1.2.2. The judge applied mitigating conditions E2.A6.1.3.3, E2.A6.1.3.1, E2.A6.1.3.6. The decision turned on the following: Applicant incurred a total of $47,612 in delinquent debts over a ten-year period, including tax liens and child support arrears; Applicant failed to adequately explain his failure to disclose significant financial indebtedness on his security clearance application; The applicant's financial problems predated his divorce and were not sufficiently mitigated by his personal circumstances.

Why the applicant was denied

• Applicant incurred a total of $47,612 in delinquent debts over a ten-year period, including tax liens and child support arrears.
• Applicant failed to adequately explain his failure to disclose significant financial indebtedness on his security clearance application.
• The applicant's financial problems predated his divorce and were not sufficiently mitigated by his personal circumstances.

Conditions referenced

Key rule quoted

“Any doubt as to whether access to classified information is clearly consistent with national security will be resolved in favor of national security.”

Procedural posture

• SOR issuedOct 1, 2003
• Answer filedNov 10, 2003
• Hearing heldMay 20, 2004
• Decision dateJan 18, 2005

Cite for

• Denial of Security Clearance Due to Significant Financial Irresponsibility Under Guideline F
• Failure to Disclose Financial Obligations on Security Clearance Application Under Guideline E
• Impact of Personal Circumstances on Financial Obligations Not Sufficient to Mitigate Security Concerns.