Summary
The applicant, a 45-year-old project manager for a federal contractor, sought an industrial security clearance under Guideline E (personal conduct) and Guideline F (financial considerations). The applicant had a history of financial problems, including delinquent debts totaling approximately $38,000, and provided false information on his security clearance application regarding these debts and a civil lawsuit. The judge found that the applicant's explanations for his omissions were not credible, leading to a denial of the security clearance.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: In the last seven years, have you been over 180 days delinquent on any debt(s)? (2.a). Are you currently over 90 days delinquent on any debts? (2.b). In the last seven years, have you been a party to any public record civil court actions not listed elsewhere on the application? (2.c). The debts in SOR ¶¶ 1.a and 1.d are for credit card accounts for about $2,375 and $860 with the same creditor that were charged off in about 2001–2003. Applicant resolved the debts in March 2008 when he agreed to settle with a collection agency for $800 (1.a). The three debts in SOR ¶¶ 1.b, 1.c, and 1.f for $270, $672, and $27,580 are addressed together because the debts are based on medical services provided to Applicant’s late wife. Applicant disputes liability for these debts because he believes the hospital was paid in full via medical insurance (1.b). The three debts in SOR ¶¶ 1.b, 1.c, and 1.f for $270, $672, and $27,580 are addressed together because the debts are based on medical services provided to Applicant’s late wife. Applicant disputes liability for these debts because he believes the hospital was paid in full via medical insurance (1.c). The debts in SOR ¶¶ 1.a and 1.d are for credit card accounts for about $2,375 and $860 with the same creditor that were charged off in about 2001–2003. Applicant resolved the debts in March 2008 when he agreed to settle with a collection agency for $800 (1.d). The debt in SOR ¶ 1.e is for a credit card account for about $6,048 that was placed for collection in about 2003. Applicant resolved this debt in about March 2007 when he agreed to settle with a collection agency that had brought a lawsuit in about 2006 or 2007. It was settled for $4,750 (1.e). The three debts in SOR ¶¶ 1.b, 1.c, and 1.f for $270, $672, and $27,580 are addressed together because the debts are based on medical services provided to Applicant’s late wife. Applicant disputes liability for these debts because he believes the hospital was paid in full via medical insurance (1.f).
The judge denied the clearance. The government raised disqualifying conditions DC 1, DC 3. The judge applied mitigating conditions MC 2, MC 4, MC 5. The decision turned on the following: The applicant provided false information on his security clearance application regarding financial delinquencies and a civil lawsuit; The judge found the applicant's explanations for his omissions to be not credible and viewed them as after-the-fact rationalizations; The applicant did not meet his burden of persuasion to mitigate the personal conduct security concern.
Why the Applicant Was Denied
- The applicant provided false information on his security clearance application regarding financial delinquencies and a civil lawsuit.
- The judge found the applicant's explanations for his omissions to be not credible and viewed them as after-the-fact rationalizations.
- The applicant did not meet his burden of persuasion to mitigate the personal conduct security concern.
Conditions Referenced
- DC 1appliedDeliberate Omission, Concealment, or Falsification of Relevant Facts
- DC 3appliedA History of Not Meeting Financial Obligations
- MC 2appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- MC 4appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- MC 5appliedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt
Key Rule Quoted
“No one has a right to a security clearance.”
Procedural Posture
- SOR issuedMar 6, 2008
- Answer filedApr 3, 2008
- Hearing heldJun 24, 2008
- Decision dateJul 30, 2008
Cite For
- False Statements in Security Clearance Applications Under Guideline E
- Financial Irresponsibility and Its Implications Under Guideline F
- Credibility Assessments in Security Clearance Determinations Based on Applicant Testimony and Explanations