Summary
A 42-year-old field service representative mechanic for a defense contractor was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The denial stemmed from a history of financial irresponsibility and a prior conviction for obtaining property by false pretense.
Specifically, the applicant had a charged-off debt of $14,402 from a truck repossession. On his October 2008 security clearance application, he responded "NO" to questions regarding debts more than 180 days past due in the last seven years and present debts more than 90 days past due, despite credit reports from October 2008 and March 2009 indicating otherwise. He also did not list the truck repossession on his e-QIP, believing it was not a repossession since he turned the vehicle in voluntarily.
The judge found that the applicant's financial issues, including a negative monthly remainder of $202, raised security concerns. While some mitigating factors were present, they were insufficient to overcome the disqualifying conditions, particularly the lack of a meaningful track record of debt repayment or a credible plan to resolve his financial issues. The prior conviction for obtaining property by false pretense further contributed to the denial by raising questions about his reliability and trustworthiness.
Why the Applicant Was Denied
- The applicant had a charged-off debt of $14,402 from a truck repossession, indicating financial irresponsibility.
- The applicant's prior conviction for obtaining property by false pretense raised questions about his reliability and trustworthiness.
- The applicant failed to demonstrate a meaningful track record of debt repayment or a credible plan to resolve his financial issues.
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 and Material Facts
- AG ¶ 16(c)raisedCredible Adverse Information in Several Adjudicative Issue Areas
- AG ¶ 20(b)rejectedConditions That Resulted in Financial Problems Were Largely Beyond the Person’s ControlThe applicant did not act responsibly in evaluating the profitability of his business venture.
- AG ¶ 20(d)rejectedInitiated a Good-faith Effort to Repay Overdue CreditorsThe applicant's single payment after the hearing did not demonstrate a systematic effort to resolve his debts.
- AG ¶ 17(c)appliedThe Offense Is so Minor or so Much Time Has Passed That It Is Unlikely to Recur
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 issuedApr 24, 2009Applicant was overseas at the time.
- Answer filedJun 3, 2009Applicant denied all allegations.
- Hearing heldSep 3, 2009Applicant signed for the Notice of Hearing on August 24, 2009.
- Decision dateNov 17, 2009
Cite For
- Financial Irresponsibility as a Disqualifying Factor Under Guideline F
- Impact of Prior Criminal Conduct on Security Clearance Eligibility Under Guideline E
- Insufficient Evidence of Good-faith Efforts to Resolve Financial Issues as a Basis for Denial.