Summary
The applicant, a 59-year-old senior project technical analyst, faced security clearance denial under Guideline E (Personal Conduct) and Guideline F (Financial Considerations) due to a long history of financial delinquency primarily linked to extensive gambling. Despite having paid off approximately $32,000 in debt through Chapter 13 bankruptcy, he still owed significant amounts in delinquent credit card debt and personal loans, and had previously falsified a travel voucher to obtain funds for gambling. The judge found that the applicant's ongoing gambling and unresolved debts raised serious security concerns, 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 submitted a false travel claim to his employer to obtain a cash advance of about $950 to repay a bookie (2.a). charged off credit card debt totaling $4,420 (1.a). charged off credit card debt totaling $4,420 (1.b). charged off credit card debt totaling $4,420 (1.c). unpaid judgment debt of $2,406 (1.d). personal loans from friends totaling $13,000 (1.e). personal loans from relatives totaling $34,000 (1.f). petitioned for Chapter 13 bankruptcy in February 2001 (1.g). falsified a travel voucher to pay a gambling debt (1.h). incurred about $120,000 in gambling losses between 1984 and 1987 (1.i). gambled from 1969 to at least June 2004 (1.j).
The judge denied the clearance. The government raised disqualifying conditions E2.A6.1.2.1, E2.A6.1.2.2, E2.A6.1.2.3, E2.A6.1.2.5, E2.A5.1.2.1. The judge applied mitigating conditions E2.A6.1.3.6, E2.A6.1.3.3, E2.A6.1.3.4. The decision turned on the following: The applicant has a long history of financial delinquency primarily due to gambling since 1969; He continues to gamble despite significant past losses and ongoing debts; The applicant falsified a travel voucher to obtain funds for gambling, demonstrating poor judgment and dishonesty; Unresolved delinquent debts and continued gambling activities raise serious security concerns.
Why the Applicant Was Denied
- The applicant has a long history of financial delinquency primarily due to gambling since 1969.
- He continues to gamble despite significant past losses and ongoing debts.
- The applicant falsified a travel voucher to obtain funds for gambling, demonstrating poor judgment and dishonesty.
- Unresolved delinquent debts and continued gambling activities raise serious security concerns.
Conditions Referenced
- E2.A6.1.2.1raisedA History of Not Meeting Financial Obligations
- E2.A6.1.2.2raisedDeceptive or Illegal Financial Practice
- E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts
- E2.A6.1.2.5raisedFinancial Problems Linked to Gambling
- E2.A5.1.2.1raisedReliable, Unfavorable Information Provided by Associates
- E2.A6.1.3.6appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors
- E2.A6.1.3.3rejectedConditions That Resulted in the Behavior Were Largely Beyond the Person’s Control
- E2.A6.1.3.4rejectedThe Individual Has Successfully Resolved Debts
Key Rule Quoted
“An applicant has the ultimate burden of demonstrating that it is clearly consistent with the national interest to grant or continue his security clearance.”
Procedural Posture
- SOR issuedSep 28, 2005
- Answer filedOct 25, 2005
- Hearing heldJun 27, 2006
- Decision dateJan 23, 2007
Cite For
- Denial of Clearance Due to Unresolved Financial Obligations and Gambling Issues
- Impact of Gambling on Financial Stability Under Guideline F
- Poor Judgment and Dishonesty as Disqualifying Factors Under Guideline E