Summary
A 44-year-old system administrator employed by a U.S. defense contractor was denied a security clearance under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The denial stemmed from an extensive history of financial problems and a failure to disclose relevant information during the clearance process.
The applicant's financial difficulties dated back to October 1989 with a Chapter 13 bankruptcy filing, followed by additional filings. Beyond the bankruptcies, government exhibits substantiated 17 delinquent accounts totaling over $28,000. While the applicant admitted to the majority of these financial allegations, he disputed some debts and claimed not to recognize others during an August 2009 interview. He also failed to corroborate claims of having paid some small debts or efforts to resolve others. Despite a November 2009 personal financial statement showing a positive monthly cash flow, no payments were being made on the alleged debts, and no documented action had been taken to address them.
A significant factor in the denial was the applicant's lack of candor. He failed to disclose any information about his financial problems on his clearance application, answering "no" to 15 questions regarding financial history. He also falsely stated that all debts were satisfied under a July 2005 bankruptcy filing. The judge found that the applicant's extensive financial difficulties and lack of candor were significant concerns that were not mitigated, leading to the denial of his security clearance.
Why the Applicant Was Denied
- Applicant has an extensive history of financial difficulties dating back to 1989, including multiple bankruptcy filings.
- Applicant failed to disclose significant financial problems on his clearance application, constituting a lack of candor.
- The applicant did not demonstrate any efforts to address or resolve his financial issues.
Conditions Referenced
- F.1.araisedInability or Unwillingness to Satisfy Debts
- F.1.craisedA History of Not Meeting Financial Obligations
- E.2.araisedDeliberate Omission, Concealment, or Falsification of Relevant and Material Facts
Key Rule Quoted
“The Government has a compelling interest in ensuring each applicant possesses the requisite judgement, reliability, and trustworthiness of those who must protect national interests as their own.”
Procedural Posture
- SOR issuedJun 15, 2010
- Answer filed—Applicant requested a decision without hearing.
- Hearing held—No hearing was conducted.
- Decision dateJul 27, 2011
Cite For
- Lack of Candor in Security Clearance Applications Under Guideline E
- Extensive Financial Difficulties as a Disqualifying Factor Under Guideline F
- Failure to Mitigate Financial Issues in Security Clearance Cases