Summary
The applicant, a 32-year-old former Navy service member, sought a security clearance but was denied due to financial difficulties and personal conduct issues. The applicant admitted to multiple overdue debts and filed for Chapter 13 bankruptcy, but failed to provide sufficient evidence of debt resolution or good-faith efforts to address his financial obligations. Additionally, the applicant was found to have deliberately falsified information on his security clearance application regarding his financial status.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: The SOR alleges that Applicant deliberately falsified material facts on an Electronic Questionnaires for Investigations Processing (e-QIP) that he executed on May 28, 2015. He was asked questions about his finances, including: In the last seven years, had any of his bills been turned over to a collection agency; had any account been suspended, charged off or cancelled for failing to pay as agreed, had he been over 120 days delinquent on any debt; and whether he was currently over 120 delinquent on any debt. Applicant answered “No,” and the SOR alleged that he deliberately failed to list the all of the delinquent debts, as set forth under subparagraph 1.a through 1.i., above. Applicant did not address this allegation in his RSOR (2.a). This overdue debt is cited in the SOR for a delinquent mortgage account in the amount of $7,798 with a total loan balance of approximately $333,689 (1.a). This overdue debt is cited in the SOR for a delinquent account in the amount of $27,002. This debt was for a timeshare, which Applicant purchased in 2013, and he surrendered after he could no longer make payments (1.b). This overdue debt is cited in the SOR for a delinquent account in the amount of $3,123 (1.c). This overdue debt is cited in the SOR for a delinquent account in the amount of $2,345 (1.d). This overdue debt is cited in the SOR for a delinquent account. The amount was not identified in the SOR. As discussed above, Applicant contended that this debt, which Applicant stated was in the amount of $2,000, was paid through a garnishment out of his tax return around April 2015 (1.e). This overdue debt is cited in the SOR for a delinquent account. The amount was not identified in the SOR (1.f). This overdue debt is cited in the SOR for a delinquent account. The amount was not identified in the SOR. Applicant testified that this creditor, a car company, was not willing to be part of the bankruptcy because the debt was for the purchase of a relatively new vehicle (1.g). This overdue debt is cited in the SOR for a delinquent account. The amount was not identified in the SOR. As discussed above, Applicant contended that this debt, was paid around August 2011, in the amount of approximately $700 through his checking account (1.h). This overdue debt is cited in the SOR for a delinquent account in the amount of $1,751. Applicant testified that this was to the same creditor as that listed on 1.b. above, but he was not certain if it was a duplicate or another bill from this creditor (1.i).
The judge denied the clearance. The government raised disqualifying conditions F.19.a, F.19.b, E.16.a. The judge applied mitigating conditions F.20.b. The decision turned on the following: The applicant failed to provide evidence that his debts were resolved or reduced through bankruptcy; The applicant admitted to deliberately falsifying material facts on his e-QIP regarding his financial situation.
Why the Applicant Was Denied
- The applicant failed to provide evidence that his debts were resolved or reduced through bankruptcy.
- The applicant admitted to deliberately falsifying material facts on his e-QIP regarding his financial situation.
Conditions Referenced
- F.19.araisedInability to Satisfy Debts
- F.19.braisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- E.16.araisedDeliberate Omission, Concealment, or Falsification of Relevant Facts
- F.20.brejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlWhile the applicant's financial issues were due to circumstances beyond his control, the lack of evidence regarding the status of the bankruptcy undermined this mitigation.
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 19, 2016
- Answer filedJan 11, 2017
- Hearing heldJun 8, 2017
- Decision dateMar 21, 2018
Cite For
- Financial Difficulties and Bankruptcy Under Guideline F
- Deliberate Falsification of Information Under Guideline E
- Impact of Unresolved Debts on Security Clearance Eligibility