Summary
The applicant, a 54-year-old manager for a government contractor, faced security clearance issues under Guideline F (Financial Considerations) and Guideline J (Criminal Conduct). While the judge found mitigating circumstances for the criminal conduct, the applicant failed to adequately address longstanding federal income tax delinquencies, leading to a denial of the security clearance.
Under Guideline F (Financial Considerations) and Guideline J (Criminal Conduct), the Statement of Reasons alleged the following: that he owed the IRS delinquent taxes, penalties, and interest for tax years 1980, 1984, 1987, 1988, 1991-1993, 2000, and 2001, and his Offer in Compromise was still pending (1.a). that he owed a creditor approximately $505 on a delinquent account that had been placed for collection in about September 2002, and, as of March 25, 2004, the debt had not been paid (1.b). that he owed a creditor approximately $122 on a delinquent account that had been placed for collection in about March 1999, and, as of March 25, 2004, the debt had not been paid (1.c). that he owed a creditor approximately $649 on an account that was placed for collection in about May 2003, and, as of March 25, 2004, the debt had not been paid (1.d). that he owed a creditor approximately $100 on two accounts placed for collection in about October 2003, and, as of March 25, 2004, the debts had not been paid (1.e). Applicant was arrested in June 1989 on a bench warrant and charged with three counts of Forging and Uttering U.S. Treasury Check; that he pled guilty to Count III of the indictment and Counts I and II were dismissed; that he was sentenced to two years in jail, with two years suspended, and placed on two years supervised probation, ordered to carry out 75 hours of community service, and fined $50 (2.a). DOHA alleged the facts in ¶ 2.a. disqualified Applicant, pursuant to 10 U.S.C. § 986, from being granted a security clearance or having a security clearance renewed (2.b).
The judge denied the clearance. The government raised disqualifying conditions E2.A6.1.2.1, E2.A6.1.2.3. The judge applied mitigating conditions E2.A10.1.3.1, E2.A10.1.3.2, E2.A10.1.3.6. The decision turned on the following: The applicant has a history of federal income tax delinquencies dating back to the early 1980s, which remain unpaid and continue to accrue interest and penalties; The applicant failed to provide credible evidence of resolving his financial obligations or a clear plan to address his tax debts; The applicant's vagueness and lack of documentation negatively impacted his credibility.
Why the Applicant Was Denied
- The applicant has a history of federal income tax delinquencies dating back to the early 1980s, which remain unpaid and continue to accrue interest and penalties.
- The applicant failed to provide credible evidence of resolving his financial obligations or a clear plan to address his tax debts.
- The applicant's vagueness and lack of documentation negatively impacted his credibility.
Conditions Referenced
- E2.A6.1.2.1raisedFinancial Considerations - Inability or Unwillingness to Satisfy Debts
- E2.A6.1.2.3raisedFinancial Considerations - Financial Problems That Are Not Being Resolved
- E2.A10.1.3.1appliedCriminal Conduct - Isolated Incident
- E2.A10.1.3.2appliedCriminal Conduct - Successful Rehabilitation
- E2.A10.1.3.6appliedCriminal Conduct - Evidence of Good Conduct
Key Rule Quoted
“"No one has a 'right' to a security clearance."”
Procedural Posture
- SOR issuedNov 4, 2004
- Answer filedNov 9, 2004
- Hearing heldOct 4, 2006Applicant declined to submit additional information after the hearing.
- Decision dateOct 31, 2006
Cite For
- Denial of Security Clearance Due to Unresolved Financial Delinquencies Under Guideline F
- Mitigating Circumstances for Criminal Conduct Under Guideline J
- Impact of Credibility on Financial Obligation Assessments