Summary
A 56-year-old former military member, seeking to work for a DoD contractor, was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The applicant admitted to significant financial issues, including multiple judgments and delinquent debts totaling over $169,892. These included a $3,814 judgment from February 2016, a $4,910 judgment from August 2016, a $935 judgment from November 2017, and six charged-off student loans.
Further issues arose from the applicant's failure to file federal income tax returns for tax year 2016. Additionally, the applicant falsified answers and omitted judgments and delinquent debts on his e-QIP application, raising personal conduct concerns.
Despite some mitigating conditions being considered, the judge found insufficient evidence of good-faith efforts to resolve the outstanding debts. Consequently, the applicant was denied eligibility for access to classified information.
Why the Applicant Was Denied
- The applicant had significant financial issues, including multiple judgments and delinquent debts totaling over $169,892.
- He admitted to failing to file tax returns and falsifying information on his e-QIP application.
- The judge found insufficient evidence of good-faith efforts to resolve the debts.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(f)rejectedFailure to File or Fraudulently Filing Annual Federal, State, or Local Income Tax ReturnsThe judge found insufficient evidence to show that the applicant earned enough income to require filing.
- AG ¶ 16(a)appliedDeliberate Omission, Concealment, or Falsification of Relevant Facts
- AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlThe applicant claimed he could not work due to caring for his mother.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue Creditors or Resolve DebtsThe judge found no evidence of a good-faith effort to resolve debts.
Key Rule Quoted
“A promise to pay in the future does not demonstrate a good-faith effort to resolve one’s financial situation and is not a substitute for a track record of paying debts in a timely manner.”
Procedural Posture
- SOR issuedJun 26, 2018
- Answer filedJul 20, 2018
- Hearing heldNov 7, 2018via video teleconference
- Decision dateFeb 22, 2019
Cite For
- Denial of Security Clearance Due to Significant Financial Issues Under Guideline F
- Falsification of Information on E-qip Application Under Guideline E
- Insufficient Evidence of Good-faith Efforts to Resolve Debts as a Basis for Denial