Summary
A 44-year-old defense contractor employee was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The denial stemmed from a history of financial instability and the falsification of information on her security clearance application.
The applicant admitted to two bankruptcies, a Chapter 7 discharge in 2001 and a Chapter 13 discharge in February 2010. Additionally, a judgment was filed against her in 2015. She acknowledged 21 delinquent debts totaling approximately $67,472, which included significant student loan debt for her two daughters. On her October 2016 e-QIP, the applicant falsely denied having federal debt and denied that any of her debts had been turned over to a collection agency in the past seven years.
The judge found that the applicant's falsification of information regarding federal debt was deliberate and lacked credibility. Despite some mitigating conditions being considered, the applicant failed to demonstrate a meaningful track record of debt repayment or a defined plan to address her financial obligations. Consequently, the judge determined there was insufficient evidence of financial responsibility or rehabilitation, leading to the denial of the security clearance.
Why the Applicant Was Denied
- The applicant admitted to two bankruptcies and 21 delinquent debts totaling approximately $67,472, including significant student loan debt.
- The applicant falsified information on her security clearance application regarding federal debt, which was deemed deliberate and not credible.
- The applicant failed to demonstrate a meaningful track record of debt repayment or a defined plan to address her financial obligations.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 16(a)raisedDeliberate Omission, Concealment, or Falsification of Relevant Facts
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlThe applicant's evidence failed to show consistent payment documentation on her student loans since 2013.
- AG ¶ 20(c)rejectedFinancial CounselingThe applicant has never had financial counseling.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsThe applicant did not provide evidence of a good-faith effort to repay her debts.
Key Rule Quoted
“Any doubt concerning personnel being considered for national security eligibility will be resolved in favor of the national security.”
Procedural Posture
- SOR issuedSep 7, 2017
- Answer filedNov 27, 2017
- Hearing heldSep 21, 2018
- Decision dateApr 9, 2019
Cite For
- Denial of Security Clearance Due to Financial Irresponsibility Under Guideline F
- Falsification of Information on Security Clearance Applications Under Guideline E
- Insufficient Evidence of Rehabilitation or Financial Responsibility Leading to Security Clearance Denial.