Loading case…

Summary

The applicant, a 46-year-old male with a high school education, faced security clearance denial under Guidelines E (Personal Conduct) and F (Financial Considerations) due to significant delinquent debts totaling approximately $50,000 and failure to disclose financial judgments on his security clearance application. The judge found that the applicant's financial irresponsibility and lack of understanding of his financial obligations raised concerns about his reliability and trustworthiness, leading to the denial of his security clearance.

Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant deliberately failed to disclose his true financial status when he answered 'No' to the question about whether a financial judgment had been filed against him (2.a). Applicant deliberately failed to disclose his true financial status when he answered 'No' to the question about whether a tax lien had been filed against him (2.b). Applicant deliberately failed to disclose his true financial status when he answered 'No' to the question about whether bills or debts had been turned over to a collection agency (2.c). Applicant deliberately failed to disclose his true financial status when he answered 'No' to the question about whether any account had been suspended or charged off (2.d). judgment, $12,391 (1.c). judgment, $3,800 (1.d). judgment, $15,000 (1.e). state tax lien, $8,711 (1.f). medical debt, $221 (1.g). medical debt, $764 (1.h). medical debt, $52 (1.i). utility, $770 (1.j). cell phone service, $926 (1.k). medical, $2,124 (1.l). medical, $577 (1.m). insurance policy, $38 (1.n). medical, $722 (1.o). credit card, $443 (1.p). medical, $107 (1.q). auto insurance, $458 (1.r). insurance, $180 (1.s). cash advance, $2,495 (1.t). medical, $709 (1.u).

The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c), AG ¶ 19(e). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(d). The decision turned on the following: The applicant had a history of significant delinquent debts totaling approximately $50,000; He failed to disclose financial judgments and delinquencies on his security clearance application, indicating a lack of understanding or awareness of his financial situation; The applicant's financial issues were recent and frequent, undermining his claims of improved financial responsibility.

Why the Applicant Was Denied

• The applicant had a history of significant delinquent debts totaling approximately $50,000.
• He failed to disclose financial judgments and delinquencies on his security clearance application, indicating a lack of understanding or awareness of his financial situation.
• The applicant's financial issues were recent and frequent, undermining his claims of improved financial responsibility.

Conditions Referenced

Key Rule Quoted

“A security clearance decision is intended only to resolve the question of whether it is clearly consistent with the national interest for an applicant to either receive or continue to have access to classified information.”

Procedural Posture

• SOR issuedApr 24, 2014
• Answer filed—
• Hearing heldSep 10, 2014
• Decision dateNov 14, 2014

Cite For

• Denial of Security Clearance Due to Significant Financial Delinquencies Under Guideline F
• Failure to Disclose Financial Judgments on Security Clearance Application Under Guideline E
• Impact of Financial Irresponsibility on Security Clearance Eligibility