Summary
The applicant, a retired Navy member, faced security clearance denial under Guidelines E and F due to unresolved financial issues and failure to disclose certain debts on his e-QIP. Despite some debts being disputed or resolved, significant outstanding debts remained, raising concerns about his reliability and trustworthiness. The judge found no willful falsification in the applicant's conduct but ultimately concluded that the financial issues were not sufficiently mitigated.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: In answer to Sections 28.a. and 28.b. on his May 2008 e-QIP, the Applicant failed to disclose his delinquent debts in excess of 90 and 180 days (GX 3 at pages 26~27) (2.a). It is alleged that the Applicant is indebted to Creditor A in the amount of about $755 (1.a). It is alleged that the Applicant is indebted to Creditor B in the amount of about $128 (1.b). It is alleged that the Applicant has an outstanding judgment to Creditor C in the amount of about $1,019 (1.c). It is alleged that the Applicant is indebted to Creditor D in the amount of about $584 (1.d). It is alleged that the Applicant is indebted to Creditor E in the amount of about $728 (1.e). It is alleged that the Applicant is indebted to Creditor F, for student loans, in the combined amount of about $19,586 (1.f). It is alleged that the Applicant is indebted to Creditor O in the amount of about $1,000 (1.o). The Applicant filed for the protection of a Chapter 13 Bankruptcy in February of 1995, but later withdrew his petition (1.p). It is alleged that the Applicant is indebted to Creditor Q for an outstanding judgement in the amount of about $1,280 (1.q). It is alleged that the Applicant is indebted to Creditor R in the amount of about $244 (1.r). It is alleged that the Applicant is indebted to Creditor S in the amount of about $7,625 (1.s). It is alleged that the Applicant is indebted to Creditor T for two debts, one for about $275 and the other for $1,760 (1.t). It is alleged that the Applicant is indebted to Creditor V in the amount of about $420 (1.v). It is alleged that the Applicant is indebted to Creditor W for two debts totaling about $488 (1.w). It is alleged that the Applicant is indebted to Creditor Y in the amount of about $320 (1.y).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(d). The decision turned on the following: The applicant has significant outstanding debts totaling over $2,000, which he failed to resolve despite having a positive cash flow; The applicant's financial issues raised concerns about his reliability and trustworthiness, as outlined in AG ¶ 18 and AG ¶ 19(a).
Why the Applicant Was Denied
- The applicant has significant outstanding debts totaling over $2,000, which he failed to resolve despite having a positive cash flow.
- The applicant's financial issues raised concerns about his reliability and trustworthiness, as outlined in AG ¶ 18 and AG ¶ 19(a).
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue Creditors or Resolve DebtsThe applicant's efforts were insufficient to mitigate the outstanding debts.
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 issuedDec 12, 2008
- Answer filedDec 22, 2008
- Hearing heldMar 19, 2009
- Decision dateJun 17, 2009
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations Under Guideline F
- Consideration of Personal Conduct in Relation to Financial Disclosures Under Guideline E
- Application of the Whole Person Concept in Security Clearance Determinations.