Summary
A 62-year-old defense contractor employee was denied a security clearance under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The applicant had over $50,000 in delinquent debts, which he intentionally allowed to become delinquent starting in June 2005 as part of a program to negotiate settlements. These debts included two accounts with a single creditor, originally charged off at $8,794 and $24,881, which later resulted in a $35,102 judgment in 2007.
The Statement of Reasons alleged that the applicant falsely answered "No" to two questions on his security clearance application concerning debts over 180 days delinquent and current delinquencies. His explanation for these omissions was deemed unconvincing. While the debts were eventually resolved, the judge found that the deliberate omission of these substantial delinquencies on his application raised significant concerns regarding his reliability and trustworthiness.
The denial was based on the applicant's intentional omission of significant delinquent debts, which reflected poor judgment and a lack of candor during the security clearance process. Disqualifying conditions E2.a and F1.a were raised, while mitigating conditions F2.c and F2.d were applied.
Why the Applicant Was Denied
- The applicant intentionally omitted significant delinquent debts from his security clearance application, raising serious concerns about his honesty and reliability.
- Despite resolving his debts, the applicant's actions were deemed to reflect poor judgment and a lack of candor during the security clearance process.
Conditions Referenced
- E2.aappliedDeliberate Omission, Concealment, or Falsification of Relevant Facts
- F1.araisedInability or Unwillingness to Satisfy Debts
- F2.cappliedThe Person Has Received or Is Receiving Counseling for the Problem And/or There Are Clear Indications That the Problem Is Being Resolved or Is Under Control
- F2.dappliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“A person applying for access to classified information seeks to enter into a fiduciary relationship with the Government predicated upon trust and confidence.”
Procedural Posture
- SOR issuedJul 30, 2009
- Answer filedAug 11, 2009Applicant requested a decision on the written record.
- Hearing held—No hearing was held.
- Decision dateMay 10, 2010
Cite For
- Deliberate Omission of Debts on Security Clearance Application Under Guideline E
- Financial Considerations and Their Impact on Security Clearance Eligibility Under Guideline F
- The Importance of Honesty and Candor in the Security Clearance Process