Summary
The applicant, a 27-year-old defense contractor and former U.S. Navy service member, faced security clearance denial under Guideline E (Personal Conduct) and Guideline F (Financial Considerations) due to 20 delinquent accounts totaling approximately $22,000 and providing false information on his e-QIP. The judge found that the applicant failed to mitigate the security concerns related to his financial irresponsibility and dishonesty.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant provided false answers to financial questions on his February 2016 Electronic Questionnaires for Investigations Processing (e-QIP) (2.a). Repossessed automobile account, $11,391 (1.a). Credit union account, $1,677 (1.d). Credit union account, $938 (1.l). Credit union account, $417 (1.m). Insurance company debt, $110 (1.n). State turnpike and bridge authority debt, $85 (1.o). State turnpike and bridge authority debt, $85 (1.p). State turnpike and bridge authority debt, $85 (1.q). State turnpike and bridge authority debt, $85 (1.r). State turnpike and bridge authority debt, $85 (1.s). State turnpike and bridge authority debt, $85 (1.t).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(b), AG ¶ 19(c), AG ¶ 16(a). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), AG ¶ 20(e). The decision turned on the following: The applicant had 20 charged-off and collection accounts totaling approximately $22,000; He provided false answers regarding his financial obligations on his e-QIP; The applicant failed to demonstrate a good-faith effort to resolve his debts or mitigate the financial concerns.
Why the Applicant Was Denied
- The applicant had 20 charged-off and collection accounts totaling approximately $22,000.
- He provided false answers regarding his financial obligations on his e-QIP.
- The applicant failed to demonstrate a good-faith effort to resolve his debts or mitigate the financial concerns.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(b)raisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 16(a)raisedDeliberate Omission, Concealment, or Falsification of Relevant Facts
- AG ¶ 20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurThe applicant's financial issues have persisted for several years.
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlThe applicant's financial problems were not sufficiently mitigated by his wife's temporary loss of income.
- AG ¶ 20(c)rejectedThe Individual Has Received or Is Receiving Counseling for the ProblemThere is no evidence of financial counseling.
- AG ¶ 20(d)rejectedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue CreditorsThe applicant failed to honor a court-ordered repayment agreement.
- AG ¶ 20(e)rejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant admitted to the debts and did not provide evidence of disputing them.
Key Rule Quoted
“An applicant is not required to be debt free or to develop a plan for paying off all debts immediately or simultaneously, but he is required to act responsibly given his circumstances and develop a reasonable plan for repayment, accompanied by 'concomitant conduct.'”
Procedural Posture
- SOR issuedMay 9, 2017
- Answer filedMay 26, 2017Applicant elected to proceed without a hearing.
- Hearing held—Decision made based on the written record.
- Decision dateMay 29, 2018
Cite For
- Denial of Security Clearance Due to Financial Irresponsibility Under Guideline F
- Failure to Provide Truthful Information on E-qip Under Guideline E
- Insufficient Evidence of Mitigating Circumstances for Financial Issues