PSH-18-0009 - In the Matter of Personnel Security Hearing

On April 12, 2018, an Administrative Judge determined that an individual’s access authorization under 10 C.F.R. Part 710 should be restored. The individual is employed by a DOE contractor in a position that requires him to hold a DOE security clearance. During a background investigation, information surfaced about the individual’s finances and his failure to file Federal and state income tax returns. During his personnel security interview conducted in October 2017, the individual admitted that he had a number of outstanding debts and that he failed to file his 2015 and 2016 Federal and state income taxes as required by law.  During the hearing, the individual addressed each delinquent account and failure to file his taxes.  He testified that the outstanding delinquent debts cited in the Notification Letter were due in large part to his wife’s unstable employment history. The individual also acknowledged that his money was sometimes directed to funding family hobbies as well as his son’s sports activities, rather than paying off his debt. The individual testified that, with respect to his charged-off account of $4,598, he has an established payment arrangement with the company, and has made five monthly payments as of the date of the hearing. With respect to the remaining collection accounts totaling $3,051, the individual submitted evidence that he has paid all of these accounts in full, and that they have been removed from his most recent credit report. Regarding his failure to file his 2015 and 2016 tax returns, the individual acknowledged that it took him two years to find someone to complete his taxes, and that he did not take this obligation as seriously as he should have. He testified that he filed both his 2015 and 2016 taxes on October 23, 2017, after his October PSI. He further testified that his 2017 tax returns have been filed in a timely manner. The individual testified about his current financial situation, stating that he paid for his wife’s training and job-related certification, and she is currently working. He also reiterated that he is no longer spending money on hobbies or his son’s extracurricular activities. According to the individual, he and his wife currently have “a good budget,” and have no new delinquencies. The Administrative Judge found that the individual met the mitigating criteria of Adjudicative Guideline F in that the individual “initiated and is adhering to a good-faith effort to repay creditors or otherwise resolve debts” and that “the individual has made arrangements with the appropriate tax authority to file or pay the amount owed and is in compliance with those arrangements.”  Moreover, the Administrative Judge found the individual to be credible during the hearing regarding his intentions moving forward.  She therefore found that the individual had resolved the concerns regarding his conduct, and concluded that the individual’s access authorization should be restored. (Kimberly Jenkins-Chapman)