Summary
A 31-year-old technician for a Department of Defense contractor 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 unpaid debts and intentional omissions regarding these financial issues on his security clearance application.
The Statement of Reasons detailed 19 specific delinquent debts, including multiple medical bills, electric bills, cell phone bills, store accounts, and various credit and bank debts. Crucially, the applicant answered "no" to questions on his SF-86 regarding debts delinquent over 90 days and over 180 days in the last seven years, which was deemed an intentional omission of material facts.
Despite a commendable military background and positive employer references, the adjudicator found that the applicant's long history of accumulating delinquent debts, many of which remained unpaid, combined with his intentional misrepresentation of his financial status, posed an unacceptable security risk. Disqualifying conditions under AG ¶ 19(a), AG ¶ 19(c), and AG ¶ 16(a) were raised, while mitigating conditions under AG ¶ 20(b), AG ¶ 20(c), and AG ¶ 20(d) were applied but ultimately did not overcome the concerns. The security clearance was DENIED.
Why the Applicant Was Denied
- The applicant had a long history of accumulating delinquent debts, many of which remained unpaid.
- The applicant intentionally omitted material facts regarding his financial delinquencies from his security clearance application.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 16(a)appliedDeliberate Omission, Concealment, or Falsification of Relevant Facts
- AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlThe applicant's wife's job loss contributed to their financial difficulties.
- AG ¶ 20(c)rejectedEvidence of Counseling for the ProblemThe applicant met with a financial counselor only once and did not demonstrate ongoing efforts to resolve his debts.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant has not resolved many of the debts listed in the SOR.
Key Rule Quoted
“A person who seeks access to classified information enters into a fiduciary relationship with the Government predicated upon trust and confidence.”
Procedural Posture
- SOR issuedFeb 5, 2009
- Answer filedMar 1, 2009
- Hearing heldMay 28, 2009
- Decision dateJun 22, 2009
Cite For
- Financial Delinquencies as a Disqualifying Factor Under Guideline F
- Intentional Omissions in Security Clearance Applications Under Guideline E
- Impact of Personal Circumstances on Financial Obligations and Security Clearance Eligibility