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Summary

The applicant, a 57-year-old supply technician and site administrator for a defense contractor, was denied a security clearance due to false statements on his application and financial irresponsibility. He failed to file federal income tax returns for multiple years and had significant delinquent debts. The judge found that the applicant did not mitigate the security concerns under Guideline E (personal conduct), Guideline F (financial considerations), and Guideline J (criminal conduct).

Under Guideline E (Personal Conduct), Guideline F (Financial Considerations), and Guideline J (Criminal Conduct), the Statement of Reasons alleged the following: Applicant answered "No" to question 33 on his security clearance application. It asked: 33. Your Financial Record - Bankruptcy In the last 7 years, have you filed a petition under any chapter of the bankruptcy code (to include chapter 13)? He failed to list that he had filed Chapter 13 bankruptcy on August 1, 2001, and August 13, 2004 (1.a). He falsified material facts in his reply to the following question: 36. Your Financial Record - Tax Lien In the last 7 years, have you had a lien placed against your property for failing to pay taxes or other debts? He answered "No," and failed to disclose that he had a lien filed against him in April 2001 (1.b). Applicant falsified material facts in his reply to the following question: 38. Your Financial Delinquencies - 180 Days In the last 7 years, have you been over 180 days delinquent on any debt(s)? He answered "No," failing to disclose that he had been over 180 days delinquent on debts, as set forth in SOR subparagraphs 2.f., 2.g., and 2.h (1.c). He also falsified material facts when he answered "No" to this question: 39. Your Financial Delinquencies - 90 Days Are you currently over 90 days delinquent on any debt(s)? He failed to disclose that he was then over 90 days delinquent on debts, as set forth in SOR subparagraphs 2.f., 2.g., and 2.h (1.d). Applicant declined to provide his signature on a tax check waiver requested by an authorized investigator for the Department of Defense (1.e). Applicant's false answers on his security clearance application constitute felony violations of 18 U.S.C. § 1001 (1.f). Applicant has been financially irresponsible and has willfully failed to file federal income tax returns for 1986-1988, 2004, and 2005 (2.a). Applicant has delinquent accounts in the amounts of $4,087 for a recreational vehicle that is in storage (2.b). Applicant has delinquent accounts in the amounts of $438 credit card debt (2.c). Applicant has delinquent accounts in the amounts of $1,941 credit card debt (2.d). Applicant has delinquent accounts in the amounts of $2,053 credit card debt (2.e). Applicant has a total tax liability to the IRS of over $88,000 (2.f). Applicant commenced a repayment plan in September 2005, paying the IRS $373 per month (2.g). Applicant willfully failed to file his federal income tax returns for tax years 1986, 1987, and 1988. He also admitted failing to file returns for 2004 and 2005, and could not remember when he had last filed a return (3.a). Applicant's false answers on his security clearance application constitute felony violations of 18 U.S.C. § 1001 (3.b).

The judge denied the clearance. The government raised disqualifying conditions E2.A5.1.2.2, E2.A6.1.2.1, E2.A6.1.2.3, E2.A10.1.2.1. The judge applied mitigating conditions E2.A6.1.3.3, E2.A6.1.3.4, E2.A6.1.3.6. The decision turned on the following: The applicant provided false answers on his security clearance application regarding his financial history and tax filings; He has a history of financial irresponsibility, including multiple bankruptcies and significant tax liabilities; The applicant failed to demonstrate that his financial issues were beyond his control or that he was taking effective steps to resolve them.

Why the Applicant Was Denied

• The applicant provided false answers on his security clearance application regarding his financial history and tax filings.
• He has a history of financial irresponsibility, including multiple bankruptcies and significant tax liabilities.
• The applicant failed to demonstrate that his financial issues were beyond his control or that he was taking effective steps to resolve them.

Conditions Referenced

Key Rule Quoted

“"No one has a 'right' to a security clearance."”

Procedural Posture

• SOR issuedFeb 2, 2006
• Answer filedMar 6, 2006
• Hearing heldDec 5, 2006
• Decision dateDec 29, 2006

Cite For

• Denial of Security Clearance Due to Falsification of Application
• Financial Irresponsibility as a Disqualifying Factor
• Impact of Personal Conduct on Security Clearance Eligibility