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Summary

The applicant, a 29-year-old married father of three, sought a security clearance but was denied due to significant financial issues and false statements made during the clearance process. The judge found that the applicant's long history of unpaid debts raised concerns about his reliability and trustworthiness, despite some mitigating factors related to his personal conduct.

Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: The Government alleges in this paragraph that the Applicant is ineligible for clearance because he has made false statements to the Department of Defense during the clearance screening process (2.a). The Applicant is indebted to a telephone company in the amount of $940 (1.a). The Applicant owes a medical debt in the amount of $297 (1.b). The Applicant admits owing $286 for a cable company early termination fee (1.c). The Applicant admits owing medical bills connected to hernia surgery totaling $4,129 (1.d). The Applicant admitted this allegation. He testified that this bad check, in the amount of $108, was actually written by his ex-wife (1.m). The Applicant admitted that he owes a utility company $32 (1.n). The Applicant admits that he broke the lease which is the subject of this debt for $466 (1.o). The Applicant admits owing this insurance debt in the amount of $182 (1.p). The Applicant admits owing this medical bill in the amount of $1,302 (1.q). The Applicant admits owing this medical bill in the amount of $976 (1.r). The Applicant admits owing a second telephone company $535 (1.s). The Applicant admits owing a third telephone company $476 for an early termination fee (1.t). The Applicant admits owing this medical bill in the amount of $162 (1.u). The Applicant admits owing this medical bill in the amount of $31 (1.v). The Applicant admits owing this past due debt of $178 for a cable box that was not returned (1.w). The Applicant admits that he owes these two medical debts, in the amount of $1,544, for shoulder surgery (1.x). The Applicant has consistently denied owing $77 to a restaurant for a bad check (1.z). The Applicant admits owing this judgment in the amount of $1,840 (1.dd). The Applicant admitted owing this cable company $146 on a past due account (1.hh). The Applicant admits that he owes a restaurant $64 for a returned check (1.ii). The Applicant admits that he owed $1,856 to a college (1.jj). The Applicant admits that he owes a bank $261 (1.kk). The Applicant admits owing this medical bill in the amount of $354 (1.ll). The Applicant admits owing $266 for a cable company early termination fee (1.mm). The Applicant admits owing this debt in the amount of $331 (1.nn). The Applicant admits owing a photographer $82 (1.oo). The Applicant admits owing a bank $622 (1.pp). The Applicant admits owing a bank $10,928 for a credit card debt (1.qq). The Applicant has consistently denied this credit card debt in the amount of $250 (1.rr). The Applicant admits owing the military exchange system $185 (1.ss). The Applicant admits owing past due child support in the amount of $27,430 for two of his children by prior marriages (1.uu). The Applicant admits owing this debt in the amount of $213 (1.vv). The Applicant has consistently denied this debt in the amount of $2,337 (1.yy). The Applicant admits owing $8,744 for a repossessed automobile (1.zz).

The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(a). The decision turned on the following: The applicant has a long history of financial difficulties, totaling approximately $72,000 in debts; The applicant made false statements on his security clearance application regarding his financial status.

Why the Applicant Was Denied

• The applicant has a long history of financial difficulties, totaling approximately $72,000 in debts.
• The applicant made false statements on his security clearance application regarding his financial status.

Conditions Referenced

Key Rule Quoted

“Failure or inability to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness and ability to protect classified information.”

Procedural Posture

• SOR issuedApr 27, 2009
• Answer filedMay 12, 2009
• Hearing heldJul 29, 2009
• Decision dateDec 14, 2009

Cite For

• Financial Difficulties as a Disqualifying Factor Under Guideline F
• False Statements During the Clearance Process as a Disqualifying Factor Under Guideline E
• The Importance of Demonstrating Reliability and Trustworthiness in Security Clearance Evaluations