Summary
The applicant, a 40-year-old security officer with a long history of employment, faced security clearance denial under Guidelines E (Personal Conduct) and F (Financial Considerations) due to significant financial issues and failure to disclose debts on his security clearance application. The judge found that the applicant's financial problems were recent and unresolved, and his omissions were deliberate, undermining his reliability and trustworthiness.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant failed to disclose any of his past indebtedness and judgments on his January 2007 e-QIP (2.a). judgment filed against him by a credit union in the amount of $20,432 (1.a). judgment filed against him by a credit card company in the amount of $1,891 (1.b). charged off account with a credit card company in the amount of $5,000 (1.c). charged off account with a retail store in the amount of $2,500 (1.d). charged off account with a bank in the amount of $3,000 (1.e). charged off account with a medical provider in the amount of $1,500 (1.f). collection account with a utility company in the amount of $800 (1.g). collection account with a medical provider in the amount of $600 (1.h). collection account with a credit card company in the amount of $1,200 (1.i). delinquent account with a bank in the amount of $1,000 (1.j).
The judge denied the clearance. The government raised disqualifying conditions F.19(a), F.19(c), E.16(a), E.16(c). The judge applied mitigating conditions F.20(b), F.20(c), E.17(a). The decision turned on the following: The applicant failed to mitigate security concerns related to financial considerations and personal conduct; The applicant admitted to significant debts totaling $55,582 and had a recent bankruptcy discharge, indicating ongoing financial instability; The applicant deliberately omitted relevant financial information from his security clearance application, demonstrating a lack of candor.
Why the Applicant Was Denied
- The applicant failed to mitigate security concerns related to financial considerations and personal conduct.
- The applicant admitted to significant debts totaling $55,582 and had a recent bankruptcy discharge, indicating ongoing financial instability.
- The applicant deliberately omitted relevant financial information from his security clearance application, demonstrating a lack of candor.
Conditions Referenced
- F.19(a)raisedInability or Unwillingness to Satisfy Debts
- F.19(c)raisedA History of Not Meeting Financial Obligations
- E.16(a)raisedDeliberate Omission, Concealment, or Falsification of Relevant Facts
- E.16(c)raisedDeliberately Providing False or Misleading Information
- F.20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant's financial issues were not sufficiently attributable to past events, as they were ongoing and unresolved.
- F.20(c)rejectedThe Person Has Received or Is Receiving Counseling for the ProblemThe applicant's financial counseling was not demonstrated to have resolved his issues.
- E.17(a)rejectedPrompt, Good-faith Efforts to Correct the OmissionThe applicant's admissions came only after being confronted, not as a proactive measure.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the revised adjudicative guidelines (AG).”
Procedural Posture
- SOR issuedOct 31, 2009
- Answer filedFeb 19, 2009Applicant requested a decision without a hearing.
- Hearing heldMay 18, 2009
- Decision date—
Cite For
- Denial Based on Significant Financial Issues Under Guideline F
- Deliberate Omissions on Security Clearance Applications Under Guideline E
- Failure to Demonstrate Financial Responsibility Post-bankruptcy Discharge