Summary
The applicant, a 45-year-old defense contractor, faced security clearance denial under Guidelines E (Personal Conduct) and F (Financial Considerations) due to 11 unresolved delinquent debts totaling $25,217 and a failure to disclose these debts on his security clearance application. The judge found that the applicant's financial issues were largely self-created and that he lacked credibility regarding his explanations for non-disclosure, leading to a conclusion that he did not mitigate the security concerns.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant did not disclose on his e-QIP his 11 delinquent debts that are listed in the SOR. Applicant knew he had debts, just not the precise creditors and amounts. Yet, he deliberately did not disclose them anywhere in the e-QIP (2.a). A utility bill for $518 owed from their former home. Applicant thought the debt was paid at the closing. This debt is unresolved (1.a). A debt owed to a bank in the amount of $1,577. Applicant states he does not remember the precise origin of this debt. He speculated it could be an insufficient fund check or a credit card debt. This debt is unresolved (1.b). A utility bill for $104 that Applicant thought was paid from his house closing funds when he sold his home in March 2007. This debt is unresolved (1.c). Applicant owes a jewelry company $2,294 for a ring he purchased for his wife in 2006. He has not contacted the company and has no money to pay this debt. It is unresolved (1.d). Applicant owes a credit union $6,352 on a loan. Applicant cannot now recall for what purpose he borrowed the money. This debt is unresolved (1.e). Applicant owes another credit union $731 for a returned check and insufficient funds fees from 2007. This debt is unresolved (1.f). Applicant owes a bank on two loans in the amounts of $2,344 and $6,275, respectively, obtained as part of the refinancing on his former home. These debts remain unresolved (1.g). Applicant owes an auto manufacturer’s financing subsidiary $4,703 on an auto lease. He could not continue to make the payments on the auto lease and arranged for the car to be repossessed in 2007. He has not repaid this debt and it is unresolved (1.h). Applicant owes a creditor $75 for a debt he does not remember or recognize. He has not tried to contact the creditor to repay the debt. This debt is unresolved (1.i). The final debt listed in the SOR owed by Applicant is one for $244 to his previous auto insurance company. Applicant changed his auto insurance carrier and thinks this amount is the balance owed at the termination of the contract. This debt is unresolved (1.j).
The judge denied the clearance. The government raised disqualifying conditions F.1.a, F.1.c, E.2.a. The judge applied mitigating conditions F.2.b, E.2.b. The decision turned on the following: The applicant has 11 delinquent debts totaling $25,217, none of which have been resolved; The applicant deliberately failed to disclose his financial delinquencies on his e-QIP, raising questions about his reliability and trustworthiness; The applicant's financial issues were largely self-created, and he did not demonstrate responsible behavior in managing his debts.
Why the Applicant Was Denied
- The applicant has 11 delinquent debts totaling $25,217, none of which have been resolved.
- The applicant deliberately failed to disclose his financial delinquencies on his e-QIP, raising questions about his reliability and trustworthiness.
- The applicant's financial issues were largely self-created, and he did not demonstrate responsible behavior in managing his debts.
Conditions Referenced
- F.1.araisedInability or Unwillingness to Satisfy Debts
- F.1.craisedHistory of Not Meeting Financial Obligations
- E.2.araisedDeliberate Omission, Concealment, or Falsification of Relevant Facts
- F.2.brejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlThe applicant's financial issues were self-created and he did not act responsibly.
- E.2.brejectedRefusal or Failure to Cooperate Was Caused by Improper AdviceThe applicant's supervisor was not authorized to provide advice on the security clearance process.
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 issuedSep 28, 2009
- Answer filedOct 19, 2009
- Hearing heldDec 15, 2009
- Decision dateApr 5, 2010
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Failure to Disclose Debts on Security Clearance Application
- Impact of Personal Conduct on Security Clearance Eligibility