Summary
A 57-year-old senior designer with military service was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The denial stemmed from over $21,000 in delinquent debts and the applicant's failure to disclose these debts on his October 25, 2006, security clearance application (SF 86). Specifically, the applicant denied being over 180 days delinquent on any debts within the preceding seven years and denied being currently over 90 days delinquent.
The Statement of Reasons detailed multiple outstanding debts, including a $548 past-due joint charge account from February 2001, a $927 credit card balance placed for collection in September 2001, and a timeshare loan with a $7,588 balance as of August 2007, which had become $3,205 past due. Other significant debts included a $3,493 credit card balance charged off around June 2001, a $7,510 collection debt from November 2002 (originally $5,956), and various other collection accounts for telephone services, a revolving charge, and medical providers.
The judge found the applicant's claims of ignorance regarding his financial situation not credible, noting that he had received collection notices and was aware of his debts. The applicant's attempts to address these issues were deemed insufficient to mitigate the concerns. Consequently, the security clearance was denied.
Why the Applicant Was Denied
- The applicant had over $21,000 in delinquent debts, indicating financial irresponsibility.
- The applicant deliberately falsified his security clearance application by denying knowledge of his debts.
- The applicant's claims of ignorance regarding his financial situation were not credible, as he had received collection notices and was aware of his debts.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(b)raisedIndebtedness Caused by Frivolous or Irresponsible Spending
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(e)raisedConsistent Spending Beyond One’s Means
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant did not demonstrate that his financial issues were primarily due to circumstances beyond his control.
- AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant contacted a debt management firm and attempted to obtain updated debt information.
Key Rule Quoted
“Any doubt concerning personnel being considered for access to classified information will be resolved in favor of national security.”
Procedural Posture
- SOR issuedOct 25, 2007
- Answer filedNov 19, 2007
- Hearing heldJan 22, 2008
- Decision dateFeb 3, 2008
Cite For
- Deliberate Falsification of Security Clearance Application Under Guideline E
- Financial Irresponsibility and Inability to Manage Debts Under Guideline F
- Credibility of Applicant's Claims Regarding Financial Awareness and Responsibility.