Summary
The applicant, a 51-year-old male with a history of military service, faced security clearance denial under Guideline E (Personal Conduct) and Guideline F (Financial Considerations) due to significant financial debts and allegations of fraudulent timekeeping. The judge found that the applicant's financial irresponsibility and history of submitting fraudulent documents raised serious concerns about his reliability and trustworthiness, leading to the denial of his security clearance.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant submitted fraudulent time and attendance records while employed by a U.S. government agency (dates not specified) (2.a). Applicant was terminated by that agency for such actions in 2012 (2.b). Applicant deliberately falsified the reasons for the termination on his SCA in 2013 (2.c). Applicant has a mortgage debt in the amount of $57,153 that is in arrears (1.a). Applicant has a credit card debt in the amount of $5,000 that is in collection (1.b). Applicant has a personal loan debt in the amount of $10,000 that is in collection (1.c). Applicant has a utility debt in the amount of $1,500 that is in collection (1.d). Applicant has a medical debt in the amount of $246 that is in collection (1.e). Applicant has a child support debt in the amount of $2,323 that is in arrears (1.f). Applicant has a tax debt in the amount of $3,000 that is in collection (1.g). Applicant has a child support debt in the amount of $2,134 that is in arrears (1.h). Applicant has a personal loan debt in the amount of $8,000 that is in collection (1.i). Applicant has a credit card debt in the amount of $4,000 that is in collection (1.j). Applicant has a personal loan debt in the amount of $6,000 that is in collection (1.k). Applicant has a credit card debt in the amount of $3,500 that is in collection (1.l). Applicant has a personal loan debt in the amount of $1,500 that is in collection (1.m). Applicant filed a Chapter 13 bankruptcy petition in 2012 that was dismissed (1.n). Applicant filed a Chapter 13 bankruptcy petition in 2013 that was dismissed (1.o). Applicant has a debt of $2,265 related to overpayment of military leave pay (1.p).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c), AG ¶ 16(a). The decision turned on the following: The applicant has a history of significant delinquent debts totaling approximately $119,285, including two dismissed Chapter 13 bankruptcy petitions; The applicant submitted fraudulent time and attendance records, resulting in his termination from a previous government job and a loss to the government of approximately $21,000; The applicant failed to demonstrate a good-faith effort to resolve his financial issues or mitigate the concerns raised by his conduct.
Why the Applicant Was Denied
- The applicant has a history of significant delinquent debts totaling approximately $119,285, including two dismissed Chapter 13 bankruptcy petitions.
- The applicant submitted fraudulent time and attendance records, resulting in his termination from a previous government job and a loss to the government of approximately $21,000.
- The applicant failed to demonstrate a good-faith effort to resolve his financial issues or mitigate the concerns raised by his conduct.
Conditions Referenced
- AG ¶ 19(a)appliedInability to Satisfy Debts
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 16(a)appliedDeliberate Misrepresentation of Relevant Facts
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the AG.”
Procedural Posture
- SOR issuedFeb 9, 2017
- Answer filedMar 14, 2017
- Hearing heldFeb 15, 2018
- Decision dateJul 27, 2018
Cite For
- Denial Based on Significant Financial Irresponsibility Under Guideline F
- Denial Due to Fraudulent Conduct Under Guideline E
- Failure to Demonstrate Mitigating Circumstances for Financial Issues