Summary
The applicant, a 60-year-old vice president of a defense contractor, faced security clearance denial under Guideline E (Personal Conduct) and Guideline F (Financial Considerations) due to a significant history of unresolved financial issues and misleading statements on his security clearance application. The judge found that the applicant failed to demonstrate responsible financial management and did not provide sufficient evidence to mitigate the concerns raised.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant failed to disclose relevant financial information on his e-QIP, including delinquent accounts and a state tax lien (2.a). Applicant made false statements regarding his financial responsibilities during the investigation (2.b). This is a joint conventional home mortgage with a high credit of $763,900 and unpaid balance of $537,793, of which $97,133 was past due. The foreclosure process started (1.a). This is an individual bank credit card account with a $20,000 credit limit and an unpaid and past-due balance of $28,980 that was charged off (1.e). This is actually two snapshots in time of an individual department store charge card issued by a bank with a $14,900 credit limit and an unpaid and past-due balance of $17,108 that was charged off, and sold to a debt purchaser (1.f). This is an individual credit card account with a $6,000 credit limit and an unpaid and past-due balance of $6,926 that was charged off (1.h). This is a judgment in the amount of $999,000 that was filed against Applicant and his wife, as individuals, as well as two of his corporations, and other defendants, in January 2016, and later amended to $1,348,334.99 in January 2016 (1.k). This is an individual bank credit card account with a $11,500 credit limit and an unpaid balance of $11,218, or which $1,394 was past due (1.l). This is an unspecified type of account with an unpaid balance of $387,645 (1.p).
The judge denied the clearance. The government raised disqualifying conditions F3, E2. The decision turned on the following: The applicant had approximately $1,709,759 in unresolved debts, including a state tax lien and multiple delinquent accounts; The applicant provided no evidence of financial counseling or improvement in his financial situation; The applicant's responses on his e-QIP were misleading, failing to disclose significant financial obligations.
Why the Applicant Was Denied
- The applicant had approximately $1,709,759 in unresolved debts, including a state tax lien and multiple delinquent accounts.
- The applicant provided no evidence of financial counseling or improvement in his financial situation.
- The applicant's responses on his e-QIP were misleading, failing to disclose significant financial obligations.
Conditions Referenced
- F3raisedInability or Unwillingness to Satisfy Debts
- E2raisedDeliberate Omission, Concealment, or Falsification of Relevant Facts From Any Personnel Security Questionnaire
Key Rule Quoted
“The security clearance decision is based on the whole person concept, which includes consideration of the applicant's character, conduct, and circumstances.”
Procedural Posture
- SOR issuedFeb 8, 2017
- Answer filedFeb 18, 2017
- Hearing heldAug 22, 2017
- Decision dateMar 5, 2018
Cite For
- Denial Based on Unresolved Financial Issues Under Guideline F
- Misleading Statements on Security Clearance Application Under Guideline E
- Failure to Demonstrate Responsible Financial Management as a Disqualifying Factor