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PSH-14-0023 - In the Matter of Personnel Security

On May 22, 2014, an OHA Administrative Judge issued a decision in which he determined that an individual’s DOE access authorization should not be restored.  The Individual had a pattern of failing to meet his financial obligations dating back to at least 2006.  At the onset of the proceeding, the Individual: (1) owed the IRS approximately $34,000.00 in back taxes for tax years 2007, 2008, 2009, and 2010, (2) had not established a payment plan or made monthly payments to resolve his Federal tax debt, (3) owed $3,025.83 in delinquent property taxes for tax years 2008, 2009, 2010, 2011 and 2012, (4) had not established a payment plan or made payments on these tax debts, (5) had not made a monthly mortgage payment for his current residence since August 2010, (6) had defaulted on the mortgage for his current residence, resulting in its foreclosure, (7) had defaulted on at least 10 other mortgages on seven investment properties, each of which has been foreclosed, and (8) had a credit card account with a balance of $10,322.00, in charge-off status.  At the hearing, the Individual argued that his financial problems resulted from a number of circumstances that were out of his control, while conceding that at times he had made some mistakes.  He further contended that he expected to restore his family’s financial stability, by the end of 2015.

The Administrative Judge found that while the decline of the real estate market, and the loss of his spouse’s income, were definitely contributing factors to his financial difficulties, so was his repeated failure to exercise sound judgment in conducting his financial affairs, starting with his repeated failure to ensure that he has sufficient funds available to meet his tax obligations, continuing with his decision to encumber himself with extensive debt, the dilatory manner in which he addressed, or not addressed, his debts, and further continuing with his decision to continue living a life style beyond his means.  Moreover, the Administrative Judge found that Individual has not submitted a sufficiently realistic and detailed financial plan to show that he can live within his means going forward and address his outstanding debt or that he would have the willingness or ability to successfully implement it.  Finally, the Administrative Judge that the Individual was a particularly unreliable historian, and that he was unable to trust the allegedly mitigating information an Individual had provided.  

Accordingly, the Administrative Judge found that the individual has not yet mitigated the security concerns raised by pattern of financial irresponsibility.

Steven Fine - Administrative Judge