Summary
A 46-year-old engineer with over two decades in the defense industry was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The Statement of Reasons detailed multiple delinquent debts, including $51,154 to a collection company, $46,573 in credit card debt, $19,292 for a copier lease, $36,480 for computer equipment, and $33,489 to a finance company. Additionally, a past-due second mortgage loan and a $7,866 credit card debt were cited.
Disqualifying conditions related to financial irresponsibility and personal conduct were raised. While some personal conduct concerns were mitigated, the applicant's significant and ongoing financial difficulties remained unaddressed.
The denial was based on the applicant's failure to mitigate financial considerations, with approximately $194,000 in delinquent debts. These financial issues were recent and ongoing, raising doubts about his reliability and judgment. Furthermore, the applicant violated a written commitment to his employer by not terminating his LLC, which resulted in the termination of his employment.
Why the Applicant Was Denied
- The applicant has not mitigated financial considerations security concerns due to significant delinquent debts totaling about $194,000.
- The applicant's financial issues are recent and ongoing, casting doubt on his reliability and judgment.
- The applicant violated a written commitment to his employer by not terminating his LLC, leading to termination of employment.
Conditions Referenced
- F.19(a)raisedInability or Unwillingness to Satisfy Debts
- F.19(c)raisedA History of Not Meeting Financial Obligations
- F.19(e)raisedConsistent Spending Beyond One’s Means
- E.16(f)raisedViolation of a Written or Recorded Commitment
- E.16(e)raisedPersonal Conduct Creating Vulnerability to Exploitation
- F.20(b)appliedConditions Largely Beyond the Person's ControlThe failure of the applicant's business was outside his control.
- E.17(c)rejectedOffense Is Minor or Unlikely to RecurThe applicant's conduct was not deemed minor and is likely to recur.
- E.17(e)rejectedPositive Steps to Reduce VulnerabilityThe applicant did not take sufficient positive steps to mitigate vulnerability.
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 issuedMay 2, 2012
- Answer filedJun 7, 2012
- Hearing heldNov 28, 2012
- Decision dateJan 7, 2013
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Impact of Personal Conduct on Security Clearance Eligibility
- Consideration of Business Failure as a Mitigating Factor in Financial Issues