Summary
A 30-year-old male applicant was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The Statement of Reasons detailed several issues, including three delinquent debts totaling $26,045 and a settled personal loan. Additionally, a vehicle purchased for $16,720 was repossessed.
Personal conduct concerns included an arrest in 2008 for shoplifting, larceny, and theft, as well as a 2016 bank fraud conviction. The applicant was also terminated from employment in 2018 for time-card fraud.
The judge determined that the applicant failed to sufficiently mitigate these security concerns. Specifically, there were ongoing financial irresponsibility, a lack of timely efforts to resolve debts, and insufficient candor regarding past conduct. Consequently, the applicant did not meet the burden of proof for clearance eligibility, and the security clearance was denied.
Why the Applicant Was Denied
- The applicant had unresolved financial issues, including three delinquent debts totaling $26,045.
- He was convicted of bank fraud in 2016 and terminated from employment for time-card fraud in 2018.
- The applicant failed to demonstrate sufficient mitigation of the security concerns, including a lack of timely efforts to resolve debts.
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 ¶ 19(d)raisedDeceptive or Illegal Financial Practices
- AG ¶ 16(d)raisedCredible Adverse Information
- AG ¶ 20(b)rejectedConditions Beyond the Person's ControlWhile the applicant experienced unemployment, some periods were due to his own misconduct.
- AG ¶ 20(c)rejectedReceived Financial CounselingThe applicant sought credit counseling shortly before the hearing but did not follow the budget created.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsThe applicant's actions did not reflect a timely and good-faith effort to repay or resolve his debts.
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 issuedDec 3, 2021
- Answer filedDec 16, 2021
- Hearing heldMay 18, 2022via video teleconference on Microsoft Teams
- Decision dateMar 3, 2023
Cite For
- Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
- Impact of Personal Conduct on Security Clearance Eligibility Under Guideline E
- Insufficient Mitigation of Financial Concerns Despite Some Efforts to Settle Debts