Summary
A 45-year-old DOD contractor was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The denial stemmed from unresolved delinquent debts totaling $49,152 and intentional omissions on his June 7, 2017 security clearance application (SCA).
The applicant had judgments entered against him in March 2012 for $808 and January 2014. His debts included a $21,036 charged-off debt from a vehicle repossession, a $13,221 charged-off truck loan, and a $3,470 charged-off debt for furniture. Other collection debts included $4,159 for an apartment rental, $1,009 past due on a $5,191 debt, and two telecommunications debts for $473 and $605, along with a $189 utilities debt.
The judge found that the applicant failed to disclose these delinquent debts on his SCA and did not provide sufficient evidence of financial responsibility or mitigation. Consequently, the applicant's financial and personal conduct concerns were deemed unmitigated, leading to the denial of his security clearance.
Why the Applicant Was Denied
- The applicant had unresolved delinquent debts totaling $49,152.
- The applicant intentionally failed to disclose his delinquent debts on his security clearance application.
- The applicant did not provide sufficient evidence of financial responsibility or mitigation.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(b)raisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 16(a)raisedDeliberate Omission, Concealment, or Falsification of Relevant Facts
- AG ¶ 20(e)rejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant did not provide documented proof to substantiate the basis of the dispute.
- AG ¶ 20(d)rejectedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue CreditorsThe applicant failed to demonstrate a good-faith effort to resolve debts.
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant did not provide sufficient evidence to show that his financial issues were beyond his control.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedOct 4, 2018
- Answer filedFeb 2, 2019
- Hearing heldMay 28, 2019
- Decision dateJul 8, 2019
Cite For
- Unresolved Delinquent Debts as a Basis for Security Clearance Denial
- Intentional Omissions on Security Clearance Applications as Disqualifying Conduct
- Failure to Demonstrate Financial Responsibility in Security Clearance Cases