Summary
A 35-year-old defense contractor employee was denied a security clearance under Guidelines E (Personal Conduct) and F (Financial Considerations) due to a history of financial delinquencies and a prior court-martial for larceny. The Statement of Reasons detailed several financial issues, including a collection account totaling approximately $4,286, a $506 collection account, a $1,329 collection account that could not be located, and another $1,773 collection account on which payments had not been made. While some debts were settled—such as a $67 payment on an unspecified debt, a $90 debt settled for $72, a $1,098 debt settled for $450, a $742 debt settled for $226, and a $149 debt paid for $72—other financial obligations remained unresolved.
Beyond the financial concerns, the applicant failed to disclose critical information on her security clearance application. Specifically, she did not report her 2001 larceny conviction, her 2001 involuntary vehicle repossession, or her financial delinquencies exceeding 90 and 180 days within the last seven years.
The denial was based on the applicant's failure to disclose her court-martial for larceny, her unresolved delinquent debts, and her inability to demonstrate a responsible financial management plan. These omissions and ongoing issues indicated a lack of candor and poor judgment, leading to the denial of her security clearance.
Why the Applicant Was Denied
- The applicant had a prior court-martial for larceny, which she failed to disclose on her security clearance application.
- The applicant has unresolved delinquent debts and did not demonstrate a responsible plan to manage her finances.
- The applicant's intentional omission of her criminal history and financial issues indicated a lack of candor and poor judgment.
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(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Unlikely to RecurThe applicant still has unresolved debts and no immediate plans to pay them.
- AG ¶ 20(b)rejectedConditions That Resulted in Financial Problems Were Largely Beyond the Person's ControlThe applicant did not act responsibly in addressing her financial issues.
- AG ¶ 20(c)rejectedEvidence of Financial Counseling or Resolution of DebtsThe applicant has not received financial counseling and lacks a sufficient track record for debt resolution.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant's efforts to settle debts were insufficient to mitigate concerns.
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 issuedFeb 26, 2009
- Answer filedMay 9, 2009
- Hearing heldAug 27, 2009
- Decision dateOct 22, 2009
Cite For
- Failure to Disclose Prior Criminal Conduct Under Guideline E
- Financial Irresponsibility and Unresolved Debts Under Guideline F
- Lack of Candor in Security Clearance Applications