Summary
The applicant, a 41-year-old defense contractor employee, sought to retain a TOP SECRET security clearance but was denied due to unresolved financial issues and lack of candor in his security clearance application. The judge found that the applicant's financial irresponsibility, including co-signing loans for friends without intention to pay, raised significant security concerns under Guidelines E and F.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: In the last 7 years, have you been over 180 days delinquent on any debt(s)? (2.a). Applicant supposedly voluntarily co-signed for a friend’s $130,000 home equity line of credit. The account was subsequently turned over for collection, and the $140,000 balance was eventually charged off to profit and loss (1.a). In June 2005, Applicant again supposedly voluntarily co-signed for another friend’s $156,000 2nd mortgage. The friend has apparently not made his required monthly payments on the loan and, when last reported in February 2009, was $29,918 delinquent on loan payments on a balance of $155,000 (1.b). In January 2006, a state tax lien was filed against Applicant, related to the residence he financed in his name, in the amount of $130.00. The lien, for unpaid property taxes and penalties, was finally released on February 12, 2009 (1.c). Applicant was married in 1990, and has one child, who is 16 years of age. He has been employed by the same defense contractor since October 1999, and currently serves as a senior technician. He steadfastly denies either of the mortgages on his personal residence is delinquent (1.d). Applicant acknowledges that, under the law, he is legally responsible for the debt, but he has no intention of paying it. He has made no effort to go after the beneficiary of the loan because they are 'friends,' and the friend is unemployed (1.e).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(b), AG ¶ 19(c), AG ¶ 16(a). The decision turned on the following: The applicant failed to demonstrate a willingness to satisfy debts and meet financial obligations; The applicant provided false information on his e-QIP regarding his financial delinquencies; The applicant's actions indicated poor judgment and lack of responsibility regarding financial commitments.
Why the Applicant Was Denied
- The applicant failed to demonstrate a willingness to satisfy debts and meet financial obligations.
- The applicant provided false information on his e-QIP regarding his financial delinquencies.
- The applicant's actions indicated poor judgment and lack of responsibility regarding financial commitments.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(b)appliedIndebtedness Caused by Frivolous or Irresponsible Spending
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 16(a)appliedDeliberate 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 issuedDec 12, 2008
- Answer filedJan 7, 2009Applicant requested a decision without a hearing.
- Hearing heldFeb 9, 2009Hearing conducted as scheduled.
- Decision dateFeb 27, 2009
Cite For
- Failure to Mitigate Financial Considerations Under Guideline F
- Lack of Candor in Security Clearance Application Under Guideline E
- Impact of Financial Irresponsibility on Security Clearance Eligibility