Summary
A 44-year-old defense contractor employee was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The denial stemmed from delinquent debts incurred from a failed restaurant business venture and a deliberate falsification on his March 2015 SF-86 security clearance application, where he falsely denied having any delinquent debts.
The applicant's Statement of Reasons included allegations that he incurred delinquent debt from the restaurant business and falsely denied these debts on his application. Disqualifying conditions were raised under both financial considerations and personal conduct.
The judge determined that the applicant's financial issues, totaling approximately $10,000 to $15,000, remained unresolved. Furthermore, his denial of these debts on the application was deemed a deliberate falsification, indicating a lack of trustworthiness. Despite several mitigating conditions being considered, the applicant did not demonstrate significant mitigation for either the financial issues or the personal conduct concerns, leading to the denial of his security clearance.
Why the Applicant Was Denied
- The applicant incurred approximately $10,000 to $15,000 in delinquent debt that remains unresolved.
- The applicant falsely denied having any delinquent debts on his security clearance application, which was deemed a deliberate falsification.
- The applicant did not demonstrate any significant mitigation of the financial issues or the personal conduct concerns.
Conditions Referenced
- F.1.araisedInability or Unwillingness to Satisfy Debts
- F.1.craisedA History of Not Meeting Financial Obligations
- E.2.araisedDeliberate Omission, Concealment, or Falsification of Relevant Facts
- F.20.arejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- F.20.brejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- F.20.crejectedThe Person Has Received or Is Receiving Counseling for the Problem
- F.20.drejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors
- F.20.erejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt
- E.17.arejectedThe Individual Made Prompt, Good-faith Efforts to Correct the Omission
- E.17.crejectedThe Offense Is so Minor, or so Much Time Has Passed, or the Behavior Is so Infrequent
Key Rule Quoted
“A person applying for access to classified information seeks to enter into a fiduciary relationship with the Government predicated upon trust and confidence.”
Procedural Posture
- SOR issuedApr 6, 2016
- Answer filedMay 13, 2016
- Hearing heldAug 16, 2016Applicant requested to leave the record open until August 30, 2016.
- Decision dateMar 8, 2017
Cite For
- Deliberate Falsification of Financial Information on Security Clearance Applications
- Ongoing Financial Irresponsibility as a Disqualifying Factor
- Lack of Mitigation for Personal Conduct Issues Related to Dishonesty