Summary
The applicant, a 47-year-old program manager for a federal contractor, faced security clearance denial under Guideline E (Personal Conduct) and Guideline F (Financial Considerations) due to unresolved financial issues and a history of debt. Despite not intentionally falsifying his security clearance application, the applicant failed to demonstrate a good-faith effort to resolve his debts, leading to the denial of his clearance.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant intentionally falsified his February 2013 security clearance application by providing misinformation regarding his security clearance revocation in the mid-1990s (2.a). During his last enlistment in the ANG, the Defense Finance and Accounting Service (DFAS) overpaid Applicant $40,000 due to a misclassification of his duty status (1.a). The deficiency balance on the auto loan is alleged in SOR ¶ 1.b ($24,700) (1.b). The SOR alleges in SOR ¶¶ 1.c ($15,985) and 1.e ($1,864) that Applicant is indebted to two credit card companies. However, he is listed an authorized user on both accounts and is not liable for the outstanding balances (1.c). The SOR also alleges that Applicant is indebted to a creditor for a delinquent cell phone bill. (SOR 1.d, $2,000) (1.d). The SOR alleges in SOR ¶ 1.e ($1,864) that Applicant is indebted to two credit card companies. However, he is listed an authorized user on both accounts and is not liable for the outstanding balances (1.e). Using the contact information provided on GE 4, Applicant attempted to contact the creditors for the medical bills alleged in SOR ¶¶ 1.f ($190) and 1.g ($116) to make payment arrangements. However, the contact information was invalid and he has not been able to make contact with the creditor (1.f). Using the contact information provided on GE 4, Applicant attempted to contact the creditors for the medical bills alleged in SOR ¶¶ 1.f ($190) and 1.g ($116) to make payment arrangements. However, the contact information was invalid and he has not been able to make contact with the creditor (1.g).
The judge denied the clearance. The government raised disqualifying conditions F3, E2. The judge applied mitigating conditions F2, E2. The decision turned on the following: The applicant has a significant history of unresolved financial problems totaling $82,800; He did not demonstrate a good-faith effort to resolve his debts or a history of financial rehabilitation; The applicant's financial issues were ongoing and not under control.
Why the Applicant Was Denied
- The applicant has a significant history of unresolved financial problems totaling $82,800.
- He did not demonstrate a good-faith effort to resolve his debts or a history of financial rehabilitation.
- The applicant's financial issues were ongoing and not under control.
Conditions Referenced
- F3raisedInability to Satisfy Debts
- E2raisedPersonal Conduct That Raises Questions About Judgment
- F2rejectedThe Conditions That Resulted in the Financial Difficulties Were Largely Beyond the Applicant's ControlWhile the applicant's financial problems were caused by events beyond his control, he did not take sufficient steps to resolve his debts.
- E2appliedThe Applicant Did Not Act with Intent to DeceiveThe judge found that the applicant did not intentionally falsify his application.
Key Rule Quoted
“A person who seeks access to classified information enters into a fiduciary relationship with the Government predicated upon trust and confidence.”
Procedural Posture
- SOR issuedNov 12, 2014
- Answer filed—
- Hearing heldJun 4, 2015
- Decision dateNov 15, 2015
Cite For
- Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
- Consideration of Personal Conduct in Relation to Financial Difficulties Under Guideline E
- The Importance of Demonstrating a Good-faith Effort to Resolve Debts for Security Clearance Eligibility