Summary
The applicant, a retired U.S. Navy petty officer, faced security clearance denial under Guidelines E (Personal Conduct) and F (Financial Considerations) due to undisclosed delinquent debts and a prior arrest. The judge found that the applicant's financial irresponsibility and lack of candor during the security clearance process raised significant concerns about his reliability and trustworthiness.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant admitted that his negative answers to two questions about delinquent debts and arrests (SOR ¶¶ 2.a and 2.b) on his SCA were incorrect, but he denied intentional falsification (2.a). Applicant did not disclose any judgments, delinquent debts, or his arrest on the Navy base (2.b). unsatisfied judgment filed in July 2012 ($11,860) (1.a). unsatisfied judgment for unpaid medical bill filed in May 2012 ($412) (1.b). unsatisfied judgment for unpaid medical bill filed in April 2009 ($294) (1.c). mortgage loan 90 days or more past due, with last activity in December 2013 ($1,904, with balance of $114,350) (1.d). delinquent car loan charged off in April 2013 ($6,013) (1.e). delinquent debt referred for collection in April 2007 ($942) (1.f). credit card account 60 days or more past due, with last activity in October 2013 ($90, with balance of $400) (1.g). credit card account 60 days or more past due, with last activity in November 2013 ($60, with balance of $322) (1.h). credit card account 120 days or more past due, with last activity in August 2013 ($197, with balance of $313) (1.i).
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(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), AG ¶ 20(e), AG ¶ 17(a), AG ¶ 17(c), AG ¶ 17(e). The decision turned on the following: The applicant failed to disclose multiple delinquent debts and a prior arrest on his security clearance application; The applicant's explanations for his omissions were deemed implausible and unconvincing; The applicant's financial issues were recent and numerous, indicating a lack of responsible management of his financial obligations.
Why the Applicant Was Denied
- The applicant failed to disclose multiple delinquent debts and a prior arrest on his security clearance application.
- The applicant's explanations for his omissions were deemed implausible and unconvincing.
- The applicant's financial issues were recent and numerous, indicating a lack of responsible management of his financial obligations.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 16(a)raisedDeliberate Omission, Concealment, or Falsification of Relevant Facts
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Unlikely to RecurApplicant's debts are numerous and recent.
- AG ¶ 20(b)rejectedConditions Beyond the Person's ControlApplicant did not act responsibly to resolve his debts.
- AG ¶ 20(c)rejectedReceived Counseling for the ProblemApplicant has not sought financial counseling.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsBankruptcy does not constitute a good-faith effort.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute Legitimacy of DebtApplicant did not dispute any of the debts alleged in the SOR.
- AG ¶ 17(a)rejectedPrompt, Good-faith Efforts to Correct OmissionsApplicant did not disclose debts until confronted.
- AG ¶ 17(c)rejectedMinor Offense or Unlikely to RecurFalsifications undermined the integrity of the security clearance process.
- AG ¶ 17(e)appliedPositive Steps to Reduce Vulnerability to ExploitationApplicant eventually admitted his delinquent debts and arrest.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the AG.”
Procedural Posture
- SOR issuedJun 9, 2014
- Answer filedJul 3, 2014
- Hearing heldSep 11, 2014
- Decision dateNov 14, 2014
Cite For
- Disqualifying Conditions Under Guidelines E and F Due to Financial Irresponsibility
- Implications of Falsification in Security Clearance Applications
- Consideration of the Whole-person Concept in Security Clearance Determinations.