Summary
The applicant, a 39-year-old single woman employed by a defense contractor, faced security clearance denial under Guidelines E and F due to significant financial issues and false statements on her security clearance application. The judge found that the applicant's financial difficulties, including over $32,000 in past due debts, raised concerns about her reliability and trustworthiness, and her failure to disclose these debts constituted a lack of candor.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: The Applicant filled out her Security Clearance Application on December 19, 2006. Question 28.a. of Item 4 asks the Applicant whether, within the last seven years, she had been more than 180 days delinquent on any debts. She stated, “No.” She did not set forth any of the numerous delinquent debts described under Paragraph 1, above. This answer was, therefore, false (2.a). Question 28.b. of Item 4 asks the Applicant whether, as of the time she filled out the Questionnaire, she was more than 90 days delinquent on any debts. She stated, “No.” She did not set forth any of the numerous delinquent debts described under Paragraph 1, above. This answer was, therefore, false (2.b). Question 27.d. asks whether, in the last seven years, the Applicant had any judgments against her which had not been paid. She answered “No.” The Applicant has consistently stated that, at the time she filled out the Questionnaire, she had no knowledge of any judgment being filed against her. Based on the available evidence, I find this denial to be both plausible and reasonable (2.c). The Applicant denies that she is indebted to a medical practice in the original amount of $637.00 for a judgment (1.a.a). The Applicant denies owing $43.00 for a medical debt, stating she did not know 'who or when this debt was made.' (1.a.b). The Applicant admits owing a bank $970.00 on an account opened in 2002 (1.a.c). The Applicant admits owing a debt to a credit union in the amount of $171.00 on an account opened in 1998 (1.a.d). The Applicant admits that she is indebted to a collection agency in the amount of $11,103.00 for an automobile loan in connection with a car that was repossessed (1.a.e). The Applicant admits that she is indebted for three different accounts in relation to student loans with Sallie Mae. The total indebtedness was originally approximately $10,456.00 (1.a.f). The Applicant admits that she is indebted to a company in the amount of $3,070.00 for an account opened in 1998 (1.a.i). The Applicant admits owing a debt to a company in the amount of $182.00 on an account opened in 1998 (1.a.j). The Applicant denies owing $1,244.00 for a medical debt, stating she did not know 'who or when this debt was made.' (1.a.k). The Applicant denies owing $159.00 for a medical debt, stating she did not know 'who or when this debt was made.' (1.a.l). The Applicant admits that she is indebted to a telephone company in the amount of $679.00 (1.a.m). Based on all of the available evidence, I find that this is a duplicate of the debt set forth under 1.a.m., above (1.a.n). The Applicant admits that she is indebted to a company in the amount of $1,000.00 (1.a.o). The Applicant admits that she is indebted to a collection agency in the amount of $4,417.00 for medical bills (1.a.p).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c), AG ¶ 16(a). The judge applied mitigating conditions AG ¶ 20(c), AG ¶ 20(d). The decision turned on the following: The applicant has over $32,000 in past due debts, indicating financial overextension; The applicant provided false answers on her security clearance application regarding her debts, demonstrating a lack of candor; The applicant failed to provide evidence of resolving her financial issues in a timely manner.
Why the Applicant Was Denied
- The applicant has over $32,000 in past due debts, indicating financial overextension.
- The applicant provided false answers on her security clearance application regarding her debts, demonstrating a lack of candor.
- The applicant failed to provide evidence of resolving her financial issues in a timely manner.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 16(a)raisedDeliberate Omission, Concealment, or Falsification of Relevant Facts
- AG ¶ 20(c)rejectedClear Indications That the Problem Is Being Resolved or Is Under ControlWhile the applicant has made some payments, the overall financial situation remains unresolved.
- AG ¶ 20(d)rejectedGood Faith Effort to Repay DebtsThe applicant's efforts were insufficient given the extent of her debts.
Key Rule Quoted
“Conduct involving questionable judgment, lack of candor, dishonesty, or unwillingness to comply with rules and regulations can raise questions about an individual’s reliability, trustworthiness and ability to protect classified information.”
Procedural Posture
- SOR issuedOct 21, 2008
- Answer filedNov 4, 2008
- Hearing held—Decision made without a hearing.
- Decision dateMay 27, 2009
Cite For
- Financial Overextension as a Disqualifying Factor Under Guideline F
- Lack of Candor in Security Clearance Applications Under Guideline E
- The Importance of Timely Resolution of Financial Obligations in Security Clearance Evaluations.