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Summary

The applicant, a 58-year-old woman, faced security concerns under Guideline E (personal conduct) and Guideline F (financial considerations) due to numerous unresolved debts, including student loans totaling approximately $67,751, and a history of failing to disclose these debts on her security clearance application. The judge found that the applicant's financial issues were ongoing and that she had deliberately omitted relevant financial information, leading to a denial of her security clearance application.

Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant deliberately omitted relevant financial information from her security clearance application (SCA) (2.a). Applicant obtained student loans from 2003 to 2009 totaling approximately $67,751. They were in deferment for a period. She has never made a payment on any of the loans (1.a). Applicant has a second mortgage of $37,000 that she is responsible for resolving. She has a payment arrangement with the bank to resolve it (1.b). Applicant acknowledged the medical debts alleged in the SOR totaling $5,000. The SOR alleged medical bills went to collection from approximately 2010 to 2015. None has been paid (1.c). Applicant acknowledged the debt to a cellphone provider in SOR ¶ 1.i ($1,346). She disputed this debt because she stated that she had contacted the cellphone company and told them to block the cellphone to prevent her daughter from making purchases, and it failed to do so (1.d). The debt in SOR ¶ 1.j ($1,003) is a car loan that Applicant thought was paid. The debt remains unresolved (1.e). Applicant acknowledged the medical debts alleged in the SOR totaling $561, $561, $247, $179, $172, $67, $4,234, $2,773, $1,065, $69, and $62. None has been paid (1.f). Applicant has not paid any of her delinquent debts or student loans. She was put on notice in 2015 that her debts raised security concerns. She has not arranged to pay them (1.g). Applicant attributed her financial problems to a period of unemployment, her husband’s legal fees, and insufficient money to pay her debts. Her financial problems are ongoing (1.h). Applicant testified that she did not receive unemployment benefits when she was unemployed because her husband was earning an income. She stated that she did not pay her bills because her husband had legal problems (1.i). Applicant completed a security clearance application (SCA) in September 2015. She answered 'no' to questions about debts turned over to collection agencies and other financial issues (1.j). Withdrawn (1.k). Applicant acknowledged the medical debts alleged in the SOR totaling $561, $561, $247, $179, $172, $67, $4,234, $2,773, $1,065, $69, and $62. None has been paid (1.l). Applicant acknowledged the medical debts alleged in the SOR totaling $561, $561, $247, $179, $172, $67, $4,234, $2,773, $1,065, $69, and $62. None has been paid (1.m). Applicant acknowledged the medical debts alleged in the SOR totaling $561, $561, $247, $179, $172, $67, $4,234, $2,773, $1,065, $69, and $62. None has been paid (1.n). Withdrawn (1.o). Applicant acknowledged the medical debts alleged in the SOR totaling $561, $561, $247, $179, $172, $67, $4,234, $2,773, $1,065, $69, and $62. None has been paid (1.p). Applicant acknowledged the medical debts alleged in the SOR totaling $561, $561, $247, $179, $172, $67, $4,234, $2,773, $1,065, $69, and $62. None has been paid (1.q). Applicant acknowledged the medical debts alleged in the SOR totaling $561, $561, $247, $179, $172, $67, $4,234, $2,773, $1,065, $69, and $62. None has been paid (1.r). Applicant acknowledged the medical debts alleged in the SOR totaling $561, $561, $247, $179, $172, $67, $4,234, $2,773, $1,065, $69, and $62. None has been paid (1.s). Applicant acknowledged the medical debts alleged in the SOR totaling $561, $561, $247, $179, $172, $67, $4,234, $2,773, $1,065, $69, and $62. None has been paid (1.t). Applicant acknowledged the medical debts alleged in the SOR totaling $561, $561, $247, $179, $172, $67, $4,234, $2,773, $1,065, $69, and $62. None has been paid (1.u). Applicant acknowledged the medical debts alleged in the SOR totaling $561, $561, $247, $179, $172, $67, $4,234, $2,773, $1,065, $69, and $62. None has been paid (1.v). Applicant acknowledged the medical debts alleged in the SOR totaling $561, $561, $247, $179, $172, $67, $4,234, $2,773, $1,065, $69, and $62. None has been paid (1.w). Applicant acknowledged the medical debts alleged in the SOR totaling $561, $561, $247, $179, $172, $67, $4,234, $2,773, $1,065, $69, and $62. None has been paid (1.x). Applicant acknowledged the medical debts alleged in the SOR totaling $561, $561, $247, $179, $172, $67, $4,234, $2,773, $1,065, $69, and $62. None has been paid (1.y). Applicant acknowledged the medical debts alleged in the SOR totaling $561, $561, $247, $179, $172, $67, $4,234, $2,773, $1,065, $69, and $62. None has been paid (1.z). Applicant acknowledged the medical debts alleged in the SOR totaling $561, $561, $247, $179, $172, $67, $4,234, $2,773, $1,065, $69, and $62. None has been paid (1.aa). Applicant acknowledged the medical debts alleged in the SOR totaling $561, $561, $247, $179, $172, $67, $4,234, $2,773, $1,065, $69, and $62. None has been paid (1.bb). Applicant acknowledged the medical debts alleged in the SOR totaling $561, $561, $247, $179, $172, $67, $4,234, $2,773, $1,065, $69, and $62. None has been paid (1.cc).

The judge denied the clearance. The government raised disqualifying conditions F.1.a, F.1.b, F.1.c, E.1.a. The decision turned on the following: The applicant failed to mitigate security concerns related to financial considerations and personal conduct; She had numerous delinquent debts and never made payments on her student loans; The applicant deliberately failed to disclose her financial problems on her security clearance application.

Why the Applicant Was Denied

• The applicant failed to mitigate security concerns related to financial considerations and personal conduct.
• She had numerous delinquent debts and never made payments on her student loans.
• The applicant deliberately failed to disclose her financial problems on her security clearance application.

Conditions Referenced

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 issuedMay 30, 2017
• Answer filedJun 19, 2017
• Hearing heldSep 19, 2017
• Decision dateNov 1, 2017

Cite For

• Failure to Disclose Financial Obligations on Security Clearance Applications Under Guideline E
• Ongoing Financial Issues as a Basis for Denial Under Guideline F
• Deliberate Omissions in Security Clearance Applications Leading to Adverse Findings