Summary
The applicant, a 58-year-old Vice President of Quality Control/Chief Inspector at a defense contractor, faced security clearance denial under Guideline E (Personal Conduct) and Guideline F (Financial Considerations) due to significant delinquent debts totaling approximately $143,960 and false statements made on his security clearance application regarding his financial situation. The judge found that the applicant failed to demonstrate responsible financial behavior or mitigate the concerns raised by his conduct.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant deliberately failed to disclose his delinquent debts and his foreclosure in response to questions on this security clearance application (2.a). A delinquent debt owed to a bank for a mortgage account was past due in the approximate amount of $28,893. The account is in foreclosure status with a total loan balance of $131,058. The account remains owing (1.a). A delinquent credit card debt owed to a bank was placed for collection in the approximate amount of $5,100. The account remains owing (1.b). A delinquent debt owed to a creditor was charged off. The debt remains owing (1.c). A delinquent debt owed to a creditor was placed for collection by CITIBANK N.A. in the approximate amount of $6,669. The account remains owing (1.d). A delinquent medical account owed to a creditor was placed for collection in the approximate amount of $520. The account remains owing (1.e). A delinquent medical account owed to a creditor was placed for collection in the approximate amount of $300. The account remains owing (1.f). A delinquent medical account owed to a creditor was placed for collection in the approximate amount of $213. The account remains owing (1.g). A delinquent medical account owed to a creditor was placed for collection in the approximate amount of $100. The account remains owing (1.h).
The judge denied the clearance. The government raised disqualifying conditions F.1.a, F.1.b, F.1.c, E.2.a. The decision turned on the following: The applicant has eight delinquent debts totaling approximately $143,960, indicating poor financial management; The applicant deliberately falsified information on his security clearance application regarding his financial status, raising questions about his reliability and trustworthiness; The applicant failed to provide evidence of any efforts to resolve his delinquent debts or to demonstrate responsible financial behavior.
Why the Applicant Was Denied
- The applicant has eight delinquent debts totaling approximately $143,960, indicating poor financial management.
- The applicant deliberately falsified information on his security clearance application regarding his financial status, raising questions about his reliability and trustworthiness.
- The applicant failed to provide evidence of any efforts to resolve his delinquent debts or to demonstrate responsible financial behavior.
Conditions Referenced
- F.1.araisedInability to Satisfy Debts
- F.1.braisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- F.1.craisedA History 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 issuedMay 17, 2017
- Answer filedMay 22, 2017Applicant requested a decision on the written record.
- Hearing held—No hearing; decision made on the written record.
- Decision dateJan 26, 2018
Cite For
- Denial Based on Significant Financial Issues Under Guideline F
- False Statements on Security Clearance Applications Under Guideline E
- Failure to Mitigate Financial and Personal Conduct Concerns in Security Clearance Cases