Summary
A 55-year-old defense contractor employee was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The applicant was terminated from previous employment for time-card fraud, having overcharged his employer for hours not worked. This conduct raised questions about his reliability and trustworthiness.
Additionally, the applicant had six delinquent debts totaling approximately $380,000. These included an unresolved small business loan debt of $113,846, an unresolved debt of $18,351, an unresolved credit card debt of $4,894, and an unresolved commercial lease debt of $214,000. While a $12,787 credit card debt and a $16,197 state tax lien were resolved, the majority of the financial obligations remained outstanding.
Further complicating the financial picture, the applicant's bankruptcy filing was dismissed due to his failure to comply with court requirements. The judge found insufficient evidence to mitigate the concerns regarding the applicant's personal conduct and significant unresolved financial issues, leading to the denial of the security clearance.
Why the Applicant Was Denied
- The applicant engaged in time-card fraud, overcharging his employer for hours not worked.
- The applicant has significant unresolved debts totaling approximately $380,000, including unpaid loans and credit cards.
- The applicant's bankruptcy was dismissed due to failure to comply with court requirements.
Conditions Referenced
- AG ¶ 16(c)raisedCredible Adverse Information in Several Adjudicative Issue Areas
- AG ¶ 16(d)raisedCredible Adverse Information That Supports a Whole-person Assessment of Questionable Judgment
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurThe applicant's fraudulent behavior was consistent and repeated.
- AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant's financial issues were attributed to a failed business venture.
- AG ¶ 20(c)rejectedThe Individual Has Received or Is Receiving Financial CounselingThe applicant did not provide evidence of effective financial counseling.
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 28, 2021
- Answer filed—Applicant requested a decision based on the written record.
- Hearing held—Decision made based on written record.
- Decision dateMar 17, 2022
Cite For
- Denial of Security Clearance Due to Personal Conduct Involving Time-card Fraud
- Significant Unresolved Financial Issues Impacting Security Clearance Eligibility
- Insufficient Evidence of Mitigation Regarding Reliability and Trustworthiness