Summary
A 36-year-old defense contractor employee was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The applicant had accrued over $160,000 in delinquent debt, primarily from unpaid student loans and a failed real estate venture. This financial obligation was a central issue under Guideline F.
Additionally, the applicant made a false statement on her security clearance application (SF 85P, question 22.b) by answering "no" to being over 180 days delinquent on any financial obligation, despite having significant outstanding debts. This deliberate misrepresentation raised concerns under Guideline E, indicating a lack of candor and reliability.
The judge determined that the applicant failed to mitigate these concerns. Specifically, she did not provide sufficient documentation to substantiate claims of resolving her debts or disputing their legitimacy. Consequently, the applicant's request for a position of trust was denied.
Why the Applicant Was Denied
- Applicant accrued over $160,000 in delinquent debt, primarily from unpaid student loans and a failed real estate venture.
- Applicant made a false statement on her security clearance application regarding her financial obligations, indicating a lack of candor and reliability.
- The applicant did not provide sufficient documentation to support her claims of resolving her debts or disputing their legitimacy.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 16(a)raisedDeliberate Omission, Concealment, or Falsification of Relevant Facts
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlWhile the applicant's financial issues stemmed from a business downturn, she did not sufficiently corroborate her efforts to resolve her debts.
- AG ¶ 20(c)appliedThe Person Has Received or Is Receiving Counseling for the ProblemThe applicant and her husband used a debt management professional, but did not document the results.
- AG ¶ 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue CreditorsThe applicant did not provide corroborating evidence of her claims regarding debt repayment.
Key Rule Quoted
“A person who has access to sensitive information enters into a fiduciary relationship with the Government based on trust and confidence.”
Procedural Posture
- SOR issuedSep 1, 2010
- Answer filed—Applicant timely answered the SOR.
- Hearing heldDec 8, 2010Hearing convened as scheduled.
- Decision dateMay 20, 2011
Cite For
- Denial of Security Clearance Due to Significant Delinquent Debt Under Guideline F
- False Statements on Security Clearance Applications Under Guideline E
- Insufficient Documentation to Mitigate Financial Concerns in Security Clearance Cases