ISCR Case No. 25-01370

______________ ______________ DEFENSE LEGAL SERVICES AGEN

Y DEFENSE OFFICE OF HEARINGS AND APPEALS In the matter of: Applicant for Security Clearance ) ) ) ) ) ISCR Case No. 25-01370 Appearances For Government: Cassie Ford, Esq., Department Counsel For Applicant: Pro Se 07/30/2026 Decision HOGAN, Erin C., Administrative Judge: This case involves security concerns raised under Guideline F (Financial Considerations). Eligibility for access to classified information is denied. Statement of the Case Applicant submitted a security clearance application (SCA) on January 9, 2024. (Item 1) On January 5, 2026, the Defense Counterintelligence and Security Agency (DCSA) sent him a Statement of Reasons (SOR) alleging security concerns under Guideline F. The DCSA acted under Executive Order (EO) 10865, Safeguarding Classified Information within Industry (February 20,

1960), as amended; Department of Defense (DOD) Directive 5220.6, Defense Industrial Personnel Security Clearance Review Program (January 2, 1992), as amended (Directive); and the adjudicative guidelines (AG) implemented by the DOD on June 8, 2017. Applicant timely answered the SOR and requested a hearing before an administrative judge. Department Counsel forwarded the case to the DOHA Hearing Office on March 5, 2026. The case was assigned to me on March 27, 2026. On April 14, 2026, a notice of hearing was issued scheduling the hearing on April 29, 2026, via video- teleconference. The hearing was held on that date. The Government offered five exhibits which were admitted in evidence as Government Exhibits (GE) 1-5 without objection. Applicant offered one exhibit which was marked as Applicant Exhibit (AE) A and admitted

without objection. The record was held open until May 13, 2026, to allow Applicant to submit additional exhibits. He timely submitted three exhibits which were marked and admitted as AE B - AE D without objection. The transcript (Tr.) was received on May 8, 2026. Some details in the decision were excluded to protect Applicant’s right to privacy. Specific information is available in the cited exhibits. Findings of Fact Applicant, age 63, has been an employee of a government contractor since July 1996 and is seeking a security clearance. He was granted a security clearance in the past without incident. He was granted a top-secret security clearance in July 1996 and in April 2021. He has also had a part-time job with a private company since October 2018. He served on active duty in the United States Navy from November 1988 to July 1996, separating with an honorable discharge. He has a high school diploma. He was born in Grenada and immigrated to the United States in August 1988. He became a naturalized United States citizen on June 5, 1996. He divorced in 2017 and has two adult stepchildren. (Tr. 15-16, GE 1; GE 5 at 11; AE A at 4) The SOR alleged delinquent federal and state income tax debts for tax years 2018, 2019, and 2020 and a Chapter 13 bankruptcy that was discharged in December 2023. Applicant admits all the allegations in the SOR. The SOR allegations include: SOR ¶ 1.a: a delinquent $3,067 federal income tax debt owed to the Internal Revenue Service (IRS) for tax year 2018. (GE 3 at 16-18); SOR ¶ 1.b: a delinquent $13,198 federal income tax debt owed to the IRS for tax year 2019. (GE 3 at 19, 26); SOR ¶ 1.c: a delinquent $13,916 federal income tax debt owed to the IRS for tax year 2020. (GE 3 at 20-21); SOR ¶ 1.d: a delinquent $1,543 state tax debt for tax year 2018. (GE 2 at 98-100; GE 3 at 9); SOR ¶ 1.e: a delinquent $1,825 state tax debt for tax year 2019. (GE 2 at 101-104; GE 3 at 12-14); SOR ¶ 1.f: a delinquent $1,944 state tax debt for tax year 2020. (GE 2 at 96; GE 3 at 15, 22, 24); and SOR ¶ 1.g: Applicant filed for Chapter 13 bankruptcy in July 2018. The bankruptcy was discharged in December 2023. (GE 1 at 49; GE 2 at 6-7, 14, 25, 29-95; GE 4 at 1). The total balance of federal taxes owed for tax years 2018, 2019 and 2020 was approximately $30,182 and the total balance of state taxes owed for tax years 2018, 2019 and 2020 was approximately $5,312. 2

Applicant testified that after his divorce in 2017, he started to “put off” things because he was feeling depressed. He was also under the mistaken belief that he did not have to file his income tax returns during his Chapter 13 bankruptcy. When he completed his security clearance application on January 9, 2024, he realized that he owed tax debts. He filed his federal income tax return for tax year 2018 on September 29, 2019, but did not pay the taxes owed. In September 2025, he hired a tax firm to help him resolve his federal tax debts. He filed his federal income tax returns for tax years 2019 and 2020 on October 20, 2025. All delinquent federal tax returns were filed. They are now waiting for the IRS to come up with a payment plan. Once he and his tax firm are notified of the payment plan, he intends to take out a home equity loan on his house to pay the tax debts in full. He has made some small payments to the IRS; he estimates the total amount of payments made was around $1,500. (Tr. 9-11, 17-23; GE 3 at 16-21) During the hearing, Applicant testified that he owes additional federal income taxes after tax year 2020. He did not provide more detailed information about which specific tax years were delinquent. He estimated that he owes a total balance of approximately $50,000 in overdue federal taxes. He would like to be given additional time to wait for the IRS to come up with a payment plan and allow him time to apply for a home equity loan which he would use to pay off the federal tax debt. (Tr. 26, 38-39) After the hearing, Applicant provided a copy of his federal income tax return for tax year 2025. His adjusted gross income was $148,164. His taxable income was $71,577. His total taxes owed were $10,661. He withheld or prepaid approximately $23,918. He received a refund of $13,257. It is likely that the refund will be applied towards his federal tax debt. (AE D) He did not provide documentation such as his tax transcripts from the IRS which would show the total amount of the tax debts and the related tax years where a tax debt was owed. Regarding the delinquent state taxes owed for tax years 2018, 2019 and 2020, Applicant testified that he negotiated a payment plan with the state on his own. The total balance of the state tax debt listed on the installment agreement was $9,564, which was more than the total balance of

the state tax debt alleged in the SOR of $5,312. He started making $230 monthly payments in September 2025. He has not missed a payment. (Tr. 24-26: GE 5 at 10; AE A at 3) After the hearing, Applicant provided an April 2026 statement from his state comptroller which listed that his remaining balance due was $4,710. His monthly installment payment is $237. He provided a copy of bank records showing that he made consistent monthly payments from October 2025 to April 2026. (AE C) He also provided a copy of his 2025 state income tax return which shows that he is to receive a refund of $5,540. He indicates the refund will be applied towards his state income tax debt and the state tax debt will be satisfied. (AE B) Based on the documents submitted, it is likely that the state tax debt is resolved. Applicant filed for Chapter 13 bankruptcy on July 31, 2018, as a result of incurring a lot of debt because of his 2017 divorce. Applicant was a cosigner on loans for a stepchild who was in college and another stepchild who attended private high school. The 3

mortgage became delinquent because of the divorce. Applicant was responsible for everything in the house. He testified that the total amount of debt for the bankruptcy was around $36,000, to include $18,000 in past due mortgage payments. The Chapter 13 bankruptcy file listed his total assets as $448,956 and his total liabilities as $388,919. His net monthly income was $4,996 and his total monthly expenses were $4,653, leaving $342 left over after expenses. (Tr. 27-28; GE 2 at 41) The Chapter 13 bankruptcy was discharged on December 29, 2023. (GE 4) It is unclear whether the student loans were discharged. Student loans are usually not dischargeable. (GE 2 at 26) In response to interrogatories, dated May 15, 2025, Applicant included a Personal Financial Statement. His net monthly income was $6,200. His total monthly expenses were approximately $2,900. His total monthly debt payments were approximately $2,565. He had approximately $735 in discretionary income after expenses. (Item 2 at 23) During the hearing, Applicant provided a summary of his monthly financial information. He said his net monthly income was $3,900; His mortgage payment is $2,700; groceries cost $60; electric service costs $100; gas costs $300, $50 for internet; and $150 for cell phone. His total expenses are $3,360, leaving him approximately $540 in discretionary income. Three years ago, he had the unexpected expense of replacing a water heater which cost $8,000. He took a loan out to pay for the water heater and is making timely payments. His car is a 2014 model and it is paid off. He estimates his home is worth $500,000 and he has approximately $1,000 in savings. (Tr. 36) Applicant took on-line courses and watched on-line lectures on personal finances. He does not follow a budget. He describes his current financial situation as good. He has no other delinquent accounts. He would like to have additional time to wait for the IRS to come up with a payment agreement, and then he will take out a home equity loan to pay off the federal tax debts. He admits that he used bad judgment when he neglected his state and federal taxes. He is ashamed of his behavior. He cannot keep his job if he does not have a security clearance. (Tr. 36-39) In July 2025, his employer recognized him for his 25 years of service. (AE A at 1-2) Policies “[N]o one has a ‘right’ to a security clearance.”

g $230 monthly payments in September 2025. He has not missed a payment. (Tr. 24-26: GE 5 at 10; AE A at 3) After the hearing, Applicant provided an April 2026 statement from his state comptroller which listed that his remaining balance due was $4,710. His monthly installment payment is $237. He provided a copy of bank records showing that he made consistent monthly payments from October 2025 to April 2026. (AE C) He also provided a copy of his 2025 state income tax return which shows that he is to receive a refund of $5,540. He indicates the refund will be applied towards his state income tax debt and the state tax debt will be satisfied. (AE B) Based on the documents submitted, it is likely that the state tax debt is resolved. Applicant filed for Chapter 13 bankruptcy on July 31, 2018, as a result of incurring a lot of debt because of his 2017 divorce. Applicant was a cosigner on loans for a stepchild who was in college and another stepchild who attended private high school. The 3

mortgage became delinquent because of the divorce. Applicant was responsible for everything in the house. He testified that the total amount of debt for the bankruptcy was around $36,000, to include $18,000 in past due mortgage payments. The Chapter 13 bankruptcy file listed his total assets as $448,956 and his total liabilities as $388,919. His net monthly income was $4,996 and his total monthly expenses were $4,653, leaving $342 left over after expenses. (Tr. 27-28; GE 2 at 41) The Chapter 13 bankruptcy was discharged on December 29, 2023. (GE 4) It is unclear whether the student loans were discharged. Student loans are usually not dischargeable. (GE 2 at 26) In response to interrogatories, dated May 15, 2025, Applicant included a Personal Financial Statement. His net monthly income was $6,200. His total monthly expenses were approximately $2,900. His total monthly debt payments were approximately $2,565. He had approximately $735 in discretionary income after expenses. (Item 2 at 23) During the hearing, Applicant provided a summary of his monthly financial information. He said his net monthly income was $3,900; His mortgage payment is $2,700; groceries cost $60; electric service costs $100; gas costs $300, $50 for internet; and $150 for cell phone. His total expenses are $3,360, leaving him approximately $540 in discretionary income. Three years ago, he had the unexpected expense of replacing a water heater which cost $8,000. He took a loan out to pay for the water heater and is making timely payments. His car is a 2014 model and it is paid off. He estimates his home is worth $500,000 and he has approximately $1,000 in savings. (Tr. 36) Applicant took on-line courses and watched on-line lectures on personal finances. He does not follow a budget. He describes his current financial situation as good. He has no other delinquent accounts. He would like to have additional time to wait for the IRS to come up with a payment agreement, and then he will take out a home equity loan to pay off the federal tax debts. He admits that he used bad judgment when he neglected his state and federal taxes. He is ashamed of his behavior. He cannot keep his job if he does not have a security clearance. (Tr. 36-39) In July 2025, his employer recognized him for his 25 years of service. (AE A at 1-2) Policies “[N]o one has a ‘right’ to a security clearance.”

Department of the Navy v. Egan, 484 U.S. 518, 528 (1988)). As Commander in Chief, the President has the authority to “control access to information bearing on national security and to determine whether an individual is sufficiently trustworthy to have access to such information.” (Egan at 527). The President has authorized the Secretary of Defense or his designee to grant applicants eligibility for access to classified information “only upon a finding that it is clearly consistent with the national interest to do so.” (EO 10865 § 2) Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the AG. These guidelines are not inflexible rules of law. Instead, recognizing the complexities of human behavior, an administrative judge applies these guidelines in conjunction with an evaluation of the whole person. An administrative judge’s overarching adjudicative goal is a fair, impartial, and commonsense decision. A

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administrative judge must consider all available and reliable information about the person, past and present, favorable and unfavorable. The Government reposes a high degree of trust and confidence in persons with access to classified information. This relationship transcends normal duty hours and endures throughout off-duty hours. Decisions include, by necessity, consideration of the possible r

sk that the applicant may deliberately or inadvertently fail to safeguard classified information. Such decisions entail a certain degree of legally permissible extrapolation about potential, rather than actual, risk of compromise