Summary
The applicant, a 37-year-old defense contractor, faced security concerns under Guidelines E (personal conduct) and F (financial considerations) due to unresolved mortgage debts and intentional falsification of his security clearance application. The judge found that the applicant did not mitigate the concerns, leading to a denial of his security clearance.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant intentionally falsified his September 2015 SF 86 when he failed to report his defaulted first mortgage loan (2.a). Applicant stopped paying his first and second mortgage loans sometime between 2010 and 2012. A credit report from April 2016 listed the first mortgage loan as $92,332 past due with a balance of $163,920. The second mortgage loan was listed as $21,190 past due with a $40,980 balance (1.a). Applicant was unable or unwilling to pay his mortgage loans. The evidence is sufficient to raise the above disqualifying conditions (1.b). SOR ¶ 1.c alleges a $4 delinquent debt. Applicant stated that he was unaware of the debt; he worked with the creditor to resolve it; and the debt has been removed from his credit report (1.c).
The judge denied the clearance. The government raised disqualifying conditions F.19(a), F.19(b), E.16(a). The judge applied mitigating conditions F.20(b), E.17(a). The decision turned on the following: The applicant failed to resolve significant mortgage debts, raising questions about his reliability and judgment; The applicant intentionally falsified his SF 86 by omitting a defaulted mortgage loan, demonstrating a lack of candor.
Why the Applicant Was Denied
- The applicant failed to resolve significant mortgage debts, raising questions about his reliability and judgment.
- The applicant intentionally falsified his SF 86 by omitting a defaulted mortgage loan, demonstrating a lack of candor.
Conditions Referenced
- F.19(a)raisedInability to Satisfy Debts
- F.19(b)raisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- E.16(a)raisedDeliberate Omission, Concealment, or Falsification of Relevant Facts
- F.20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlWhile the applicant attributed his financial issues to divorce and child support, he did not demonstrate responsible actions to address them.
- E.17(a)rejectedPrompt, Good-faith Efforts to Correct the OmissionThe applicant did not make prompt efforts to correct the falsification before being confronted.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedSep 3, 2016
- Answer filedOct 3, 2016Applicant elected to proceed without a hearing.
- Hearing held—Written record only.
- Decision dateOct 4, 2017
Cite For
- Intentional Falsification of Security Clearance Application Under Guideline E
- Ongoing Financial Issues Impacting Security Clearance Eligibility Under Guideline F
- Failure to Demonstrate Good-faith Efforts to Resolve Financial Obligations