Summary
A 66-year-old federal contractor was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The denial stemmed primarily from significant, undisclosed financial issues, including tax liens and a civil judgment.
Specifically, the applicant had an outstanding IRS tax lien from 1992 totaling approximately $99,000. Additionally, a financing company charged off a $12,000 car loan from 2001, which the applicant had co-signed. A civil judgment for $23,500 was also entered against him in favor of two contractors associated with his former business. These financial obligations were not disclosed on his security clearance application.
While some personal conduct concerns were mitigated, the applicant's history of failing to meet financial obligations and his lack of disclosure on the application raised significant questions about his reliability and judgment. The outstanding debts remained unresolved, leading to the denial of his security clearance.
Why the Applicant Was Denied
- The applicant has a history of failing to meet financial obligations, including significant tax liens and a civil judgment.
- He failed to disclose delinquent debts on his security clearance application, raising concerns about his reliability and judgment.
- The applicant did not demonstrate sufficient efforts to resolve his outstanding debts, which remain unpaid.
Conditions Referenced
- FC DC E2.A6.1.2.1raisedA History of Not Meeting Financial Obligations
- FC DC E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts
- FC MC E2.A6.1.3.1appliedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's ControlThe applicant's financial difficulties stemmed from a failed business in the early 1990s.
- FC MC E2.A6.1.3.6rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant did not present evidence of attempts to resolve the civil judgment or the automobile loan.
Key Rule Quoted
“The decision to deny an individual a security clearance is not necessarily a judgment about an applicant's loyalty.”
Procedural Posture
- SOR issuedJun 16, 2006
- Answer filedJul 7, 2006Applicant elected to have the case decided on the written record.
- Hearing held—No hearing; decided on the written record.
- Decision dateNov 21, 2006
Cite For
- Denial of Clearance Due to Unresolved Financial Obligations Under Guideline F
- Failure to Disclose Significant Debts on Security Clearance Application Under Guideline E
- Mitigation of Personal Conduct Concerns Despite Financial Issues