Legal Insider: Top Reasons for Clearance Denial in 2018

This is a sponsored column by attorneys John Berry and Kimberly Berry of Berry & Berry, PLLC, an employment and labor law firm located in Northern Virginia that specializes in federal employee, security clearance, retirement and private sector employee matters.

By John V. Berry, Esq.

We represent security clearance holders and applicants so every few years, we look back on the trends of what security concerns most often lead to the loss (or potential loss) of a security clearance. This year we thought we would do the same. Overall, not much has changed.

2018 Grounds for Loss of Security Clearance

There are 13 security concerns that can lead to the loss of a security clearance, which is listed in Security Executive Agent Directive 4 (SEAD 4). These concerns range from foreign influence to financial issues and numerous other issues in between. A review of publicly available security clearance cases was conducted by Marko Hakamaa of ClearanceJobs.com, which provided the breakdown of issues that resulted in initial security clearance denials.

Financial Issues Remain the Number 1 Concern

From the report, it is fairly clear that the number 1 issue of concern for security clearance holders remains Financial Considerations under Guideline F. While this Guideline can cover many areas related to financial responsibility, we see that it most often comes up in the context of a credit report which shows major unresolved debts or when an individual’s tax payments or filings are not timely.

Often for major debts the government is concerned that this could leave an individual subject to potential coercion. For issues related to taxes, the issue is the non-compliance of the individual with tax laws.

General Misconduct Comes in Second

The second most significant security concern from this report shows that Guideline E, Personal Conduct is the next most common clearance issue. Guideline E is a general security concern which can practically cover any type of bad conduct. Most typically, however, it often comes up in the context of illegal drug use, an arrest, a record of bad employment or lying on security clearance forms.

Foreign Influence is Ranked Third

The third most common basis for losing a security clearance was foreign influence, under Guideline B. This issue most commonly comes up when an individual with a security clearance (or who is seeking one) has relatives or property in another country.

The major concern of the government is that an individual may have relatives in another country that work for that government or who could be used as pawns to gather information from the clearance holder or applicant. The United States also treats clearance holders and seekers whose relatives are from allied countries (e.g., the United Kingdom, France, etc.) much better than those from less cooperative countries, like China or Russia.

The rest of the 2018 breakdown of security concerns is included in this report. We represent individuals with these types of security clearance appeals and there are often mitigating factors which can result in a favorable adjudication of these types of security clearance issues. The key is to involve counsel experienced in this area of law as soon as possible.

Conclusion

If you are in need of security clearance advice or representation, please contact our office at 703-668-0070 or through our contact page to schedule a consultation. Please also visit and like us on Facebook or Twitter.