Summary
The applicant, a 53-year-old budget analyst, faced security clearance denial under Guideline E (Personal Conduct) and Guideline F (Financial Considerations) due to significant unresolved debts exceeding $53,000 and intentional omissions on his security clearance application regarding his financial delinquencies. The judge found that the applicant failed to demonstrate responsible behavior in addressing his financial issues and did not provide sufficient evidence to mitigate the government's concerns.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant answered “no” on his security clearance application (SCA) to sections 27 and 28, which inquired if he had any judgments against him in the last 7 years that had not been paid; if in the past 7 years he had been over 180 days delinquent on any debt(s); and if he was currently over 90 days delinquent on any debt(s) (2.a). Applicant intentionally and deliberately failed to divulge the required information on his SCA (2.b). Applicant did not make an effort to correct the omissions and falsifications on his SCA before being confronted (2.c). The debt in SOR 1.a is to a jewelry store ($2,160). Applicant purchased a diamond bracelet in 2006 or 2007. He made a partial payment in cash and put the remaining amount on his credit card. He can not recall how much the original price was. He still has the bracelet. He made some payments and then stopped. He has not paid this debt (1.a). The debt in SOR 1.b is a medical debt ($422). He stated in his answer to the SOR that he was working on paying it. It is owed to his doctor. He is trying to work out a payment schedule, but has not made any payments toward this debt (1.b). The debt in SOR 1.c is a medical debt ($374). Applicant thought his mother paid this debt. It was incurred when he did not have health insurance. He found out his mother did not pay it. He has not paid this debt (1.c). The debt in SOR 1.d is a cell phone debt ($279). Applicant terminated the contract, but believed he did not owe a termination fee. He spoke to the creditor and they were to credit him an amount. They did not credit an amount. He has not spoken to the creditor since before he received the SOR and has not followed-up on the debt (1.d). The debt in SOR 1.e is a medical account debt ($197). Applicant stated he paid the debt, but did not provide proof of payment (1.e). The debt in SOR 1.f is a medical debt ($151) that Applicant thought he had paid, but did not. He has not paid the debt (1.f). The debt in SOR 1.g is a credit card debt ($4,868) that Applicant plans to pay in the future. Part of the amount of the debt was incurred by Applicant and part by his wife. The credit card is in Applicant’s name. He could not recall when he stopped making payments on the debt, but remembered he had the credit card before he separated from his wife. He has not contacted the creditor recently (1.g). The debts in SOR 1.h, 1.i, 1.j, and 1.k ($116, $893, $692, $90) are all to a bank where Applicant used to have accounts. When he failed to make complete child support payments, his bank accounts were levied, thereby causing overdrafts on his savings and checking accounts. The amounts reflect overdraft fees and overdrafts. He has not taken any action to resolve the accounts. He stated 'I just don’t know where to begin.' He no longer has active accounts with this bank (1.h). The debt in SOR 1.l is for medical services ($50). Applicant stated he paid this debt and does not know why it is on his credit report. He tried to contact the creditor. He stated he learned the creditor went out of business (1.l). The debt in SOR 1.m is a judgment for medical services ($169). Applicant does not remember what services were incurred. Applicant stated he attempted to contact the creditor, but because he could not find a copy of the bill he could not contact the creditor. He admitted he did not look in the telephone book, or on the internet, or review the credit report which provides a contact number. He stated he intends on contacting the creditor in the future (1.m). The debt in SOR 1.p is a student loan debt ($3,704). He stopped making payments on his student loan sometime in 2006. He was offered a settlement by the loan company on February 12, 2009 to pay $1,894 in 30 days to resolve the debt. Applicant stated he will pay that amount this week. He testified he would use the money he saved to pay the debt. When questioned about his statement that he was going to make a lump sum payment of $1,000 toward his child support, he admitted he had not considered that payment (1.p). The debt in SOR 1.q is a credit card debt ($14,000). He incurred this debt prior to separating from his wife. He stated he agreed to allow his wife to put some of her mother’s medical debts on the credit card. He stopped making payments on the credit card around 2006. He can not recall when he last contacted the creditor. In his answer to the SOR he stated he would make arrangements to pay the debt. He has not taken any action on the debt (1.q). The debt in SOR 1.r is for a repossessed car ($14,686) Applicant purchased in October 2005. He stopped making payments in January or February 2006. The loan was for five years. He was unfamiliar with how the financing worked and realized most of his monthly payments were applied to the interest and not principal of the debt. He returned the car to the dealer and was told he would be contacted when it was auctioned. He stated he has not heard from the creditor (1.r).
The judge denied the clearance. The government raised disqualifying conditions F.1.a, E.2.a. The decision turned on the following: Applicant has over $53,000 in delinquent debts that remain unpaid and unresolved; Applicant intentionally omitted relevant financial information from his security clearance application, demonstrating a lack of candor; Applicant failed to provide evidence of good-faith efforts to resolve his debts or to seek financial counseling.
Why the Applicant Was Denied
- Applicant has over $53,000 in delinquent debts that remain unpaid and unresolved.
- Applicant intentionally omitted relevant financial information from his security clearance application, demonstrating a lack of candor.
- Applicant failed to provide evidence of good-faith efforts to resolve his debts or to seek financial counseling.
Conditions Referenced
- F.1.aappliedInability or Unwillingness to Satisfy Debts
- E.2.aappliedDeliberate Omission, Concealment, or Falsification of Relevant Facts
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 issuedNov 28, 2008
- Answer filedDec 23, 2008
- Hearing heldMar 5, 2009
- Decision dateMar 26, 2009
Cite For
- Failure to Mitigate Financial Considerations Under Guideline F
- Deliberate Omission of Financial Delinquencies Under Guideline E
- Significant Unresolved Debts Impacting Security Clearance Eligibility