Summary
A 49-year-old defense contractor and former U.S. Navy service member was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The applicant had a long-standing federal tax debt of approximately $35,000, with no voluntary payments made since 2000. A state tax lien was filed against him in 1998 and released in 2000, and a federal tax lien was filed in 1999. While most non-tax bills were paid on time, he fell behind on payments to at least three creditors for four debts in 2003/2004.
Additionally, the applicant intentionally falsified information on his December 5, 2002, Security Clearance Application (SCA). He falsely answered "no" to questions regarding wage garnishment and property liens within the last seven years. He admitted to intentionally providing a false response about wage garnishment due to embarrassment and gave inconsistent explanations for his "no" response regarding property liens.
Despite the applicant's claims of intending to establish a payment plan for his tax debt, the judge found insufficient evidence of meaningful progress toward resolving his financial obligations. The intentional falsifications and inconsistent statements regarding his financial history raised serious doubts about his reliability and trustworthiness, leading to the denial of his security clearance.
Why the applicant was denied
- The applicant has a long-standing IRS debt of approximately $35,000 and has not made voluntary payments since 2000.
- The applicant intentionally provided false information on his security clearance application regarding his financial history.
- The applicant's inconsistent statements about his financial obligations raised serious doubts about his reliability and trustworthiness.
Conditions referenced
- E2.A5.1.2.2appliedDeliberate Omission, Concealment, or Falsification of Relevant and Material Facts From Any Personnel Security Questionnaire.
- E2.A6.1.2.1raisedA History of Not Meeting Financial Obligations.
- E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts.
Key rule quoted
“When such an individual intentionally falsifies material facts on a security clearance application, it is extremely difficult to conclude that he or she nevertheless possesses the good judgment, reliability and trustworthiness required of clearance holders.”
Procedural posture
- SOR issuedNov 3, 2004
- Answer filedDec 2, 2004
- Hearing heldMay 10, 2005
- Decision dateMay 31, 2005
Cite for
- Denial Based on Significant Unresolved Tax Debt Under Guideline F
- Impact of Intentional Falsification on Security Clearance Eligibility Under Guideline E
- Insufficient Evidence of Financial Reform or Repayment Plans in Security Clearance Cases.