Summary
The applicant, a 48-year-old defense contractor with five children, faced security clearance denial under Guidelines E and F due to significant unresolved financial debts and failure to disclose pertinent financial information on his Security Clearance Application. The judge found that the applicant's financial difficulties were not sufficiently mitigated and that he had deliberately omitted relevant facts, leading to a conclusion that he posed a risk to national security.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Question 26 of the SEA asks, a. “In the last 7 years, have you had any possession or property voluntarily or involuntarily repossessed or foreclosed?”; b. “In the last 7 years have you been over 180 days delinquent on any debts(s)?”; c. “Are you currently over 90 days delinquent on any debts(s)?”; and e. “In the last 7 years, have you had a judgement entered against you?” Applicant answered “No” to each of these subsections of Question 26. It is alleged in the SOR that he failed to disclose that he was delinquent on the accounts set forth in subparagraphs 1.a. through 1.j., above (2.a). This overdue debt is cited in the SOR in the amount of $1,121. No evidence was offered to show that this debt has been resolved or reduced. I find this debt is still due and owing (1.a). This overdue debt is cited in the SOR in the amount of $202. A receipt was submitted, establishing that $202.90 was paid to this creditor on October 13, 2010. (Exhibit A.) I find this debt has been resolved (1.b). This overdue debt is cited in the SOR in the amount of $119. A receipt was submitted, establishing that $119 was paid to this creditor on October 13, 2010. (Exhibit A.) I find this debt has been resolved (1.c). This overdue debt is cited in the SOR in the amount of $482. No evidence was offered to show that this debt has been resolved or reduced. I find this debt is still due and owing (1.d). This overdue debt is cited in the SOR in the amount of $1,509 on a judgement filed against Applicant in October 2006. No evidence was offered to show that this debt has been resolved or reduced. I find this debt is still due and owing (1.e). This overdue debt is cited in the SOR in the amount of $15,103 for a repossessed vehicle. No evidence was offered to show that this debt has been resolved or reduced. I find this debt is still due and owing (1.f). This overdue debt is cited in the SOR in the amount of $20,431. A letter from the creditor dated March 8, 2010, was submitted, establishing that $2,345.23 is still owing on this debt, and that Applicant had a payment due of $75 by March 31, 2010. (Exhibit A.) I find that $2,345.23 is still owing on this debt (1.g). This overdue debt is cited in the SOR in the amount of $2,220. No evidence was offered to show that this debt has been resolved or reduced. I find this debt is still due and owing (1.h). This overdue debt is cited in the SOR in the amount of $1,618. No evidence was offered to show that this debt has been resolved or reduced. I find this debt is still due and owing (1.i). This overdue debt is cited in the SOR in the amount of $336. No evidence was offered to show that this debt has been resolved or reduced. I find this debt is still due and owing (1.j).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19 (a), AG ¶ 19 (c), AG ¶ 16 (a). The judge applied mitigating conditions AG ¶ 20 (b). The decision turned on the following: The applicant had significant unresolved debts totaling over $20,000, indicating an inability to meet financial obligations; The applicant failed to provide truthful answers on his Security Clearance Application regarding his financial status, including a repossession and a judgment against him.
Why the Applicant Was Denied
- The applicant had significant unresolved debts totaling over $20,000, indicating an inability to meet financial obligations.
- The applicant failed to provide truthful answers on his Security Clearance Application regarding his financial status, including a repossession and a judgment against him.
Conditions Referenced
- AG ¶ 19 (a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19 (c)appliedHistory of Not Meeting Financial Obligations
- AG ¶ 16 (a)appliedDeliberate Omission, Concealment, or Falsification of Relevant Facts
- AG ¶ 20 (b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant failed to demonstrate responsible action regarding 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 issuedApr 9, 2010
- Answer filedJun 4, 2010
- Hearing heldSep 29, 2010
- Decision dateDec 13, 2010
Cite For
- Failure to Disclose Financial Obligations Under Guideline E
- Significant Unresolved Debts as a Basis for Denial Under Guideline F
- Deliberate Omission of Relevant Facts in Security Clearance Applications