Summary
The applicant, a 59-year-old defense contractor, sought a security clearance but was denied due to financial irresponsibility and lack of candor in his security clearance application. He admitted to significant debts exceeding $50,000 and failed to demonstrate any efforts to resolve them, while also providing false information regarding his financial status. The judge found that the applicant's conduct raised serious concerns about his reliability and trustworthiness.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: a judgment owed to a bank in the amount of $9,618 (1.a). a mortgage account owed to a bank in the amount of $34,124, was in foreclosure status with a total loan balance of $126,905 (1.b). a debt owed to a creditor that was charged off in the amount of $2,952 (1.c). a debt owed to a creditor placed for collection in the amount of $2,123 (1.d). a debt owed to a creditor placed for collection in the amount of $1,440 (1.e). a debt owed to a creditor placed for collection in the amount of $135 (1.f).
The judge denied the clearance. The government raised disqualifying conditions F.19(a), F.19(c), E.16(a), E.16(c). The decision turned on the following: The applicant failed to resolve significant debts exceeding $50,000, demonstrating financial irresponsibility; The applicant provided false information on his security clearance application regarding his financial obligations, indicating a lack of candor; The applicant did not present credible evidence of efforts to mitigate his financial issues or improve his situation.
Why the Applicant Was Denied
- The applicant failed to resolve significant debts exceeding $50,000, demonstrating financial irresponsibility.
- The applicant provided false information on his security clearance application regarding his financial obligations, indicating a lack of candor.
- The applicant did not present credible evidence of efforts to mitigate his financial issues or improve his situation.
Conditions Referenced
- F.19(a)appliedInability or Unwillingness to Satisfy Debts
- F.19(c)appliedA History of Not Meeting Financial Obligations
- E.16(a)appliedDeliberate Omission, Concealment, or Falsification of Relevant Facts
- E.16(c)appliedCredible Adverse Information in Several Adjudicative Issue Areas
Key Rule Quoted
“The adjudicative process is an examination of a sufficient period of a person’s life to make an affirmative determination that the person is an acceptable security risk.”
Procedural Posture
- SOR issuedAug 8, 2014
- Answer filedSep 8, 2014Applicant elected to proceed without a hearing.
- Hearing held—Determined on written record.
- Decision dateJan 22, 2015
Cite For
- Financial Irresponsibility Under Guideline F
- Lack of Candor in Security Clearance Applications Under Guideline E
- Failure to Mitigate Financial Issues as a Basis for Denial of Security Clearance