Summary
The applicant, a 48-year-old defense contractor with a history of financial difficulties, faced allegations under Guideline F (Financial Considerations) and Guideline E (Personal Conduct). He admitted to debts totaling approximately $40,000 but denied specific amounts owed, and the judge found a lack of effort to resolve these debts and deliberate omissions on his security clearance application. Ultimately, the applicant's request for security clearance was denied due to unresolved financial issues and dishonesty in the application process.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant deliberately concealed his financial delinquencies from the government on this application (2.a). Applicant relied on wrong advice from someone in his company’s security department as to why he marked 'NO' in response to the question concerning whether he had filed bankruptcy (2.b). A delinquent debt is owed to a creditor for an account that was placed for collection in the approximate amount of $11,462 (1.a). A delinquent debt is owed to the Navy Federal Credit Union for an account that was charged off in the approximate amount of $6,662.15 (1.b). A delinquent debt is owed to a creditor for an account that was placed for collection in the approximate amount of $1,160 (1.c). A delinquent debt is owed to a creditor for an account that was placed for collection in the approximate amount of $1,011 (1.d). A delinquent debt is owed to a creditor for an account that was placed for collection in the approximate amount of $555 (1.e). A delinquent debt is owed to a creditor for an account that was placed for collection in the approximate amount of $488 (1.f). A delinquent debt is owed to a creditor for an account that was placed for collection in the approximate amount of $16,707, for the balance due on a vehicle that was repossessed (1.g). A delinquent mortgage account was foreclosed upon in 2016 (1.h). A delinquent debt is owed for an account that was placed for collection in the approximate amount of $954 (1.i). Applicant filed for Chapter 13 Bankruptcy in about September 2016. This Bankruptcy was dismissed in about June 2017 (1.j).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(b), AG ¶ 19(c), AG ¶ 16(a). The decision turned on the following: The applicant failed to demonstrate any effort to resolve his significant delinquent debts; The applicant deliberately omitted relevant financial information from his security clearance application, raising questions about his credibility and trustworthiness.
Why the Applicant Was Denied
- The applicant failed to demonstrate any effort to resolve his significant delinquent debts.
- The applicant deliberately omitted relevant financial information from his security clearance application, raising questions about his credibility and trustworthiness.
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)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 16(a)appliedDeliberate Omission, Concealment, or Falsification of Relevant Facts
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 issuedNov 12, 2021
- Answer filedMar 18, 2022
- Hearing held—Decided on the written record without a hearing.
- Decision dateNov 21, 2022
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations Under Guideline F
- Deliberate Omissions on Security Clearance Applications Under Guideline E
- Lack of Mitigating Circumstances in Financial Distress Cases