Summary
A 59-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 a history of significant financial difficulties, including two bankruptcies and current delinquent debts exceeding $16,000.
The applicant was found to have falsified his security clearance application. Specifically, he deliberately denied being over 180 days delinquent on any debts within the preceding seven years, denied having any debts over 90 days delinquent at the time of the application, and failed to disclose a bankruptcy filing within the preceding seven years.
The judge concluded that the applicant did not adequately explain the origins of his current financial problems and failed to mitigate the security concerns raised by his financial history and the falsification of his application. Consequently, the security clearance was denied.
Why the Applicant Was Denied
- The applicant has a history of significant financial problems, including two bankruptcies and current delinquent debts over $16,000.
- The applicant provided no information demonstrating how his current financial problems arose.
- The applicant falsified his security clearance application by concealing delinquent debts.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 16(a)raisedDeliberate Omission, Concealment, or Falsification of Relevant Facts
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurThe applicant's financial obligations remain unresolved and are recent.
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThere is no evidence that the applicant's divorce or other circumstances caused his current financial problems.
- AG ¶ 20(c)rejectedReceived or Receiving Counseling for the ProblemThe applicant's repayment agreement is too recent to determine if the debts are under control.
- AG ¶ 20(d)rejectedInitiated a Good-faith Effort to Repay Overdue CreditorsThe repayment agreement is too new to assess its success.
Key Rule Quoted
“The adjudicative process is an examination of a sufficient period of a person’s life to make an affirmative determination that the person is eligible for a security clearance.”
Procedural Posture
- SOR issuedFeb 22, 2007
- Answer filedMar 18, 2007Applicant elected to proceed without a hearing.
- Hearing held—No hearing held.
- Decision dateAug 28, 2007
Cite For
- Denial of Clearance Due to Significant Financial Issues Under Guideline F
- Falsification of Security Clearance Application Under Guideline E
- Failure to Mitigate Financial Concerns Despite a Repayment Plan