Summary
A 38-year-old contracts manager for a government contractor was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The applicant had approximately $11,000 in delinquent debts, specifically two credit card debts totaling about $720 and two others totaling approximately $10,335. These debts were accumulated primarily between 1991 and 1996, during the latter years of his former marriage.
A key issue was the applicant's failure to report these four delinquent debts on his SF-86 security clearance application, specifically at Questions 28a and 28b, which raised concerns under Guideline E. While the applicant engaged in credit counseling and attempted to settle the debts, the judge found insufficient evidence of resolution and a lack of diligence in addressing the financial issues.
The denial was based on the applicant's failure to demonstrate sufficient diligence in resolving the debts prior to the Statement of Reasons, the deliberate omission of these financial delinquencies on the SF-86, and the long-standing nature of the financial issues, which were not seriously addressed until prompted by the security clearance process.
Why the Applicant Was Denied
- The applicant failed to demonstrate sufficient diligence in resolving his delinquent debts prior to the issuance of the Statement of Reasons.
- The applicant's failure to report his financial delinquencies on the SF 86 was deemed a deliberate omission, raising concerns under Guideline E.
- The applicant's financial issues were longstanding, and he did not take them seriously until prompted by the security clearance process.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 16(a)raisedDeliberate Omission, Concealment, or Falsification of Relevant and Material Facts
- AG ¶ 20(a)rejectedBehavior Happened Long Ago or InfrequentlyWhile the debts were older, the applicant did not resolve them until after the SOR was issued.
- AG ¶ 20(c)appliedEvidence of Counseling for the ProblemThe applicant engaged in credit counseling, but it was insufficient to mitigate the concerns.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsOnly one of the debts was settled, and there was no evidence of timely payments on the larger debt.
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 issuedJun 12, 2008
- Answer filedJul 3, 2008
- Hearing heldAug 25, 2008
- Decision dateOct 31, 2008
Cite For
- Failure to Mitigate Financial Considerations Under Guideline F
- Deliberate Omission of Financial Delinquencies Under Guideline E
- Insufficient Evidence of Rehabilitation in Financial Matters