Summary
The applicant, a 51-year-old defense contractor employee, faced security concerns under Guidelines E, F, and J due to financial issues stemming from a failed business venture and a DWI conviction. Despite mitigating some personal conduct and criminal conduct concerns, the applicant was unable to sufficiently address the financial considerations, leading to a denial of his security clearance.
Under Guideline E (Personal Conduct), Guideline F (Financial Considerations), and Guideline J (Criminal Conduct), the Statement of Reasons alleged the following: Applicant filed Chapter 11 bankruptcy in 2008 (1.a). Applicant has a delinquent medical debt of $434 (1.b). Applicant has a delinquent medical debt of $28 (1.c). Applicant has a delinquent debt to Bank W of $1,670 (1.d). Applicant has a delinquent debt to Bank W of $1,383 (1.e). Applicant has a delinquent debt to Bank W of $27,021 (1.f). Applicant has a delinquent department store credit card debt of $1,694 (1.g). Applicant has a delinquent debt to Bank W of $6,859 (1.h). Applicant owes $87,890 to the IRS for Corporation X’s payroll taxes (1.i). Applicant's mortgage is in foreclosure (1.j). Applicant has a delinquent debt to a telephone company of $322 (1.k). Applicant has a delinquent debt to Bank W of $991 (1.l). Applicant was arrested in February 2007 and charged with driving while intoxicated (DWI) and open alcohol container. In February 2008, he was found guilty and sentenced to 90 days in jail, which was suspended, probation for 18 months, a $1,500 fine, and court costs. Applicant acknowledged his conduct was wrong and stupid. He has not been arrested or charged with any offense since the DWI arrest (3.a). Applicant submitted a Questionnaire for National Security Positions (SF 86) in October 2008. Under the question asking about alcohol-related charges, he listed his DWI conviction. He answered all the pertinent financial questions in the negative. Applicant credibly testified that he did not intentionally falsify the SF 86 (3.b).
The judge denied the clearance. The government raised disqualifying conditions F.1.a, F.1.c. The judge applied mitigating conditions F.2.a, F.2.b, F.2.d. The decision turned on the following: The applicant failed to mitigate financial considerations security concerns due to a history of delinquent debts and inability to satisfy financial obligations; The applicant's financial problems were attributed to a breach of contract by Corporation Y, but the judge found insufficient evidence to support this claim; The applicant did not provide documentation to substantiate claims regarding the legitimacy of debts or efforts to resolve them.
Why the Applicant Was Denied
- The applicant failed to mitigate financial considerations security concerns due to a history of delinquent debts and inability to satisfy financial obligations.
- The applicant's financial problems were attributed to a breach of contract by Corporation Y, but the judge found insufficient evidence to support this claim.
- The applicant did not provide documentation to substantiate claims regarding the legitimacy of debts or efforts to resolve them.
Conditions Referenced
- F.1.araisedInability or Unwillingness to Satisfy Debts
- F.1.craisedA History of Not Meeting Financial Obligations
- F.2.arejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurThe applicant's financial issues were ongoing and not resolved.
- F.2.brejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant's claims regarding external factors were not sufficiently substantiated.
- F.2.drejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant did not demonstrate a clear plan or action to resolve his 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 issuedFeb 14, 2011
- Answer filedMar 25, 2011
- Hearing heldJul 12, 2011
- Decision dateAug 30, 2011
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Insufficient Evidence to Mitigate Financial Concerns Under Guideline F
- Impact of Corporate Financial Issues on Personal Liability and Security Clearance Eligibility