Summary
A 46-year-old applicant was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The applicant's financial history included accumulating over $80,000 in student loans, a medical creditor placing a lien on her checking account for a 2012 debt, and an outstanding debt to her state taxing authority for lacking insurance. She filed for Chapter 7 bankruptcy in January 2003, with debts discharged in May 2003, and again in February 2018, discharging medical, vehicle, credit card, satellite television, cell phone, and apartment debts.
The judge noted that the applicant had numerous delinquent debts beginning in 2012. Critically, she deliberately failed to disclose any debts delinquent for more than 180 days on her 2014 Position of Public Trust Questionnaire. She also deliberately failed to disclose delinquent debts or financial problems when completing her 2016 SCA, despite being aware of her lack of health insurance and financial distress.
The denial was based on the applicant's failure to disclose numerous delinquent debts on her security clearance applications and her history of two Chapter 7 bankruptcies, which raised doubts about her reliability and trustworthiness. The judge found her explanations for these financial issues insufficient to mitigate the security concerns.
Why the Applicant Was Denied
- The applicant failed to disclose numerous delinquent debts on her security clearance applications.
- The applicant's financial history included two Chapter 7 bankruptcies, raising doubts about her reliability and trustworthiness.
- The judge found the applicant's explanations for her financial issues insufficient to mitigate security concerns.
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)appliedConditions Largely Beyond the Person's ControlThe applicant attributed her financial problems to unemployment and lack of health insurance.
- AG ¶ 20(c)rejectedReceived Financial CounselingInsufficient evidence was provided to show her financial situation is under control.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsThe applicant's debts were resolved through bankruptcy, which does not constitute a good-faith effort.
Key Rule Quoted
“Eligibility for access to classified information is denied.”
Procedural Posture
- SOR issuedJan 24, 2018
- Answer filedFeb 14, 2018
- Hearing heldOct 17, 2018
- Decision dateDec 21, 2018
Cite For
- Failure to Disclose Delinquent Debts Under Guideline E
- Repeated Bankruptcies as a Disqualifying Factor Under Guideline F
- Insufficient Evidence of Financial Stability as a Basis for Denial of Security Clearance.