Summary
A 42-year-old retired Navy Chief Petty Officer was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The applicant had approximately $49,000 in unresolved debts and failed to disclose these financial issues on two separate security clearance applications, one in 2004 and another in 2008. He answered "No" to questions regarding financial issues despite having numerous past-due debts, providing no initial indication to the government that his finances were a concern. While he later discussed his debts with an investigator, this did not mitigate the initial dishonesty.
The applicant disputed many of the alleged debts, which included car loans, credit card accounts, a furniture purchase, a personal loan, an IRS tax lien, and other miscellaneous charges. For several of these, he claimed the debts were paid, dismissed, or not his responsibility, but he consistently failed to provide supporting documentation. For example, he claimed an IRS tax lien for approximately $13,000 had been paid by allotment and that a $7,069 loan he co-signed was paid, but offered no proof.
The denial was based on the applicant's failure to provide documentation for his claims of debt resolution, his history of financial problems without demonstrating a good-faith effort to resolve them, and his repeated failure to disclose financial delinquencies on his applications, which raised significant questions about his reliability and trustworthiness.
Why the Applicant Was Denied
- The applicant failed to provide documentation supporting his claims of debt resolution.
- The applicant had a history of financial problems and did not demonstrate a good-faith effort to resolve his debts.
- The applicant's failure to disclose financial delinquencies on his security clearance applications raised questions about his reliability and trustworthiness.
Conditions Referenced
- AG ¶19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶19(g)appliedFailure to File Annual Federal, State, or Local Income Tax Returns as Required
Key Rule Quoted
“A security clearance decision is intended only to resolve the question of whether it is clearly consistent with the national interest for an Applicant to either receive or continue to have access to classified information.”
Procedural Posture
- SOR issuedJun 20, 2008
- Answer filedAug 4, 2008
- Hearing heldOct 22, 2008
- Decision dateDec 17, 2008
Cite For
- Failure to Disclose Financial Issues on Security Clearance Applications Under Guideline E
- Significant Unresolved Debts Under Guideline F
- Lack of Documentation to Support Claims of Debt Resolution