Summary
A 50-year-old U.S. citizen, originally from the Philippines, was denied a security clearance due to unmitigated concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). While Guideline B (Foreign Influence) concerns were mitigated, the applicant's excessive gambling, significant financial issues, and falsification of information during the security clearance process led to the denial.
The applicant admitted to substantial gambling losses, totaling approximately $134,400 between 2019 and 2023, and acknowledged borrowing money or engaging in financial transactions to fund gambling or pay related debts, which involved intentional breaches of trust. He also admitted to concealing or attempting to conceal gambling losses during his interview with a DoD investigator and falsifying material facts.
Specific financial issues included a $5,337 personal loan placed for collection, a $3,180 judgment, a $3,143 debt for a closed credit card, a $6,150 loan from August 2022, and a $5,440 judgment from July 2020. Other debts included $60, $25, $563 for a closed credit card, $7,034 (actual $6,500), and $770. The applicant also filed for Chapter 7 Bankruptcy in April 2016. The judge found that the applicant's financial difficulties were ongoing, and his continued gambling demonstrated a lack of responsible financial management.
Why the Applicant Was Denied
- The applicant admitted to excessive gambling resulting in substantial financial losses totaling approximately $134,400 from 2019 to 2023.
- The applicant falsified information during a security clearance interview regarding his financial situation and gambling debts.
- The applicant's financial difficulties were ongoing and he continued to gamble up until the hearing, demonstrating a lack of responsible financial management.
Conditions Referenced
- AG ¶ 19(a)appliedInability to Satisfy Debts
- AG ¶ 19(b)appliedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 19(d)appliedDeceptive or Illegal Financial Practices
- AG ¶ 19(h)appliedBorrowing Money or Engaging in Significant Financial Transactions to Fund Gambling or Pay Gambling Debts
- AG ¶ 19(i)appliedConcealing Gambling Losses or Other Problems Caused by Gambling
- AG ¶ 16(b)appliedDeliberately Providing False or Misleading Information
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to Recur
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- AG ¶ 20(c)rejectedReceived or Is Receiving Financial Counseling
- AG ¶ 20(d)rejectedInitiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors
Key Rule Quoted
“A person who seeks access to classified information enters into a fiduciary relationship with the Government predicated upon trust and confidence.”
Procedural Posture
- SOR issuedApr 2, 2024
- Answer filedApr 22, 2024
- Hearing heldFeb 26, 2025
- Decision dateJul 9, 2025
Cite For
- Denial of Security Clearance Due to Excessive Gambling Under Guideline F
- Falsification of Information During the Security Clearance Process Under Guideline E
- Mitigation of Foreign Influence Concerns Under Guideline B