Summary
A 54-year-old Estimating Supervisor for a defense contractor was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The denial stemmed from significant unresolved debts and false statements made during the application process.
The applicant failed to disclose state tax liens from 2011 and 2012 totaling approximately $10,900. Additionally, he had multiple delinquent student loan accounts with the U.S. Department of Education, ranging from approximately $2,518 to $9,318. Other outstanding debts included a delinquent account for $379, a mortgage account over 120 days past due with an approximate delinquency of $49,751, a medical account for $3,422, and another delinquent account for $232. A traffic violation from April 2015 also resulted in an active warrant for failure to pay the fine.
The judge found that the applicant's unresolved debts, totaling approximately $84,000, demonstrated poor financial management. His false statements regarding the tax liens raised questions about his honesty and reliability. Ultimately, the applicant failed to provide sufficient evidence of efforts to resolve his financial issues or establish a meaningful repayment history, leading to the denial of his security clearance.
Why the Applicant Was Denied
- The applicant has unresolved debts totaling approximately $84,000, indicating poor financial management.
- The applicant provided false information on his security clearance application regarding state tax liens, raising questions about his honesty and reliability.
- The applicant failed to provide sufficient evidence of efforts to resolve his financial issues or to demonstrate a meaningful track record of repayment.
Conditions Referenced
- F.1.araisedInability to Satisfy Debts
- F.1.braisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- F.1.craisedHistory of Not Meeting Financial Obligations
- E.2.araisedDeliberate Omission, Concealment, or Falsification of Relevant Facts
Key Rule Quoted
“Failure to live within one's means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual's reliability, trustworthiness, and ability to protect classified or sensitive information.”
Procedural Posture
- SOR issuedJul 15, 2016
- Answer filedOct 10, 2016
- Hearing held—Decided on the written record without a hearing.
- Decision dateOct 25, 2017
Cite For
- Denial Based on Unresolved Financial Obligations Under Guideline F
- False Statements Regarding Financial History Under Guideline E
- Credibility Issues Impacting Security Clearance Eligibility