Summary
The applicant, a 46-year-old high school graduate and business owner, faced security clearance denial due to over $96,000 in unpaid debts from a failed construction business, which he personally guaranteed. He failed to disclose these debts on his security clearance application, leading to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The judge found that the applicant's refusal to acknowledge his financial obligations undermined his reliability and trustworthiness, resulting in a denial of clearance.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant answered “no” to the question in Section 27d of the eQIP, asking if there were any unpaid judgments against him in the last seven years. He did not disclose the judgments alleged in SOR ¶¶ 1.a, 1.b, 1.e, and 1.f (2.a). Applicant's failure to disclose the existence of his construction company and his employment as president of that company suggests an attempt to conceal the entire financial misadventure involving his construction company (2.b). Applicant made no effort to correct his omissions and misleading answers until he was confronted with the evidence (2.c). The vendors obtained default judgments against the corporation and against Applicant individually, and the judgments were unsatisfied as of the date of the hearing (1.a). The vendors obtained default judgments against the corporation and against Applicant individually, and the judgments were unsatisfied as of the date of the hearing (1.b). A credit card debt of $13,691 was charged off in April 2001, and it remains unpaid (1.c). Applicant received a parking ticket sometime in 1999, while on vacation (1.d). Applicant negotiated an installment payment plan to pay off the default judgment alleged in SOR ¶ 1.e. However, his check for the first payment was dishonored, and he did not redeem the check or make any further payments (1.e). A debt of $4,151 on this credit card was charged off in November 2001, and it remains unpaid (1.f). A debt of $4,151 on this credit card was charged off in November 2001, and it remains unpaid (1.g).
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: Applicant failed to pay debts totaling over $96,000, which he personally guaranteed; He did not disclose these debts on his security clearance application, raising concerns of lack of candor; The applicant's refusal to pay debts he guaranteed cast doubt on his reliability and trustworthiness.
Why the Applicant Was Denied
- Applicant failed to pay debts totaling over $96,000, which he personally guaranteed.
- He did not disclose these debts on his security clearance application, raising concerns of lack of candor.
- The applicant's refusal to pay debts he guaranteed cast doubt on his reliability and trustworthiness.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 16(a)raisedDeliberate Omission, Concealment, or Falsification of Relevant Facts
Key Rule Quoted
“No one has a ‘right’ to a security clearance.”
Procedural Posture
- SOR issuedOct 16, 2006
- Answer filedDec 4, 2006
- Hearing heldJul 19, 2007
- Decision dateAug 23, 2007
Cite For
- Lack of Candor in Security Clearance Applications Under Guideline E
- Financial Obligations and Personal Responsibility Under Guideline F
- Impact of Undisclosed Debts on Security Clearance Eligibility