Summary
The applicant, a 61-year-old financial-management analyst, faced security clearance denial under Guidelines E (personal conduct) and F (financial considerations) due to a history of delinquent debts totaling $27,228 and failure to provide accurate financial information on his security clearance application. The judge found that the applicant did not demonstrate sufficient progress in resolving his financial issues and failed to disclose his debts truthfully, leading to concerns about his reliability and trustworthiness.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant answered no to all of these questions (2.a). $7,130 on a bank account (1.a). $5,849 on a bank account (1.b). $1,276 on a telecommunications account (1.c). $1,216 on a telecommunications account (1.d). $70 on a telecommunications account (1.i). $567 on a bank account (1.k). $145 on a telecommunications account (1.m).
The judge denied the clearance. The government raised disqualifying conditions F.19(a), F.19(c), E.16(a). The judge applied mitigating conditions F.20(c), F.20(d), F.20(e). The decision turned on the following: The applicant has a history of 12 delinquent, collection, or charged-off accounts and two judgments totaling $27,228; He has not made any payments to SOR creditors since December 2012; The applicant failed to provide sufficient documentation of his progress in resolving his financial problems; He knowingly submitted inaccurate information on his SF 86 regarding his financial issues.
Why the Applicant Was Denied
- The applicant has a history of 12 delinquent, collection, or charged-off accounts and two judgments totaling $27,228.
- He has not made any payments to SOR creditors since December 2012.
- The applicant failed to provide sufficient documentation of his progress in resolving his financial problems.
- He knowingly submitted inaccurate information on his SF 86 regarding his financial issues.
Conditions Referenced
- F.19(a)raisedInability or Unwillingness to Satisfy Debts
- F.19(c)raisedA History of Not Meeting Financial Obligations
- E.16(a)raisedDeliberate Omission, Concealment, or Falsification of Relevant Facts
- F.20(c)rejectedThe Person Has Received or Is Receiving Counseling for the Problem And/or There Are Clear Indications That the Problem Is Being Resolved or Is Under ControlThe applicant did not provide evidence of financial counseling or a budget.
- F.20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant's payment plans were not formalized and he did not demonstrate a good-faith effort.
- F.20(e)appliedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant disputed some debts, which were credited as mitigated.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedJun 15, 2015
- Answer filedJul 16, 2015
- Hearing heldOct 1, 2015Applicant waived his right to 15 days of notice.
- Decision dateNov 3, 2015
Cite For
- Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
- Failure to Disclose Financial Problems on Security Clearance Application Under Guideline E
- Insufficient Evidence of Good-faith Efforts to Resolve Debts as a Mitigating Factor.