Summary
A 32-year-old employee of a DoD contractor was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The denial stemmed from significant financial delinquencies exceeding $10,000 and the falsification of her SF 86.
Specifically, the applicant failed to disclose over $10,000 in delinquent financial obligations on her SF 86, citing embarrassment and fear of losing her clearance. These obligations included a judgment of $3,314.36 and other debts, with more than $6,700 converted to judgments. Although the applicant made a partial payment of approximately $3,000 after receiving the Statement of Reasons, this was not considered a good-faith effort to resolve her outstanding debts.
The judge determined that the applicant continued to have delinquent financial obligations totaling more than $8,000, with over $6,700 still converted to judgments. Consequently, the security clearance application was denied.
Why the Applicant Was Denied
- The applicant failed to disclose over $10,000 in delinquent financial obligations on her SF 86 due to embarrassment and fear of losing her clearance.
- The applicant's one-time payment of approximately $3,000 was deemed insufficient to demonstrate a good-faith effort to resolve her debts.
- The applicant continues to have delinquent financial obligations totaling more than $8,000, with over $6,700 converted to judgments.
Conditions Referenced
- E2.A6.1.2.1raisedA History of Not Meeting Financial Obligations
- E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts
- E2.A5.1.2.2raisedThe Deliberate Omission, Concealment, or Falsification of Relevant and Material Facts
- E2.A6.1.3.6rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe judge found the applicant's payment was not a good-faith effort due to its timing and lack of a consistent repayment history.
- E2.A5.1.3.1rejectedThe Information Was Unsubstantiated or Not Pertinent to a Determination of Judgment, Trustworthiness, or ReliabilityThe judge found the omissions on the SF 86 were material and relevant to the applicant's trustworthiness.
Key Rule Quoted
“A person who seeks access to classified information enters a fiduciary relationship with the Government predicated upon trust and confidence.”
Procedural Posture
- SOR issuedJun 21, 2001
- Answer filedSep 5, 2001
- Hearing heldJan 22, 2002
- Decision dateMar 20, 2002
Cite For
- Denial Based on Failure to Disclose Significant Financial Obligations Under Guideline E
- Insufficient Evidence of Good-faith Efforts to Resolve Debts Under Guideline F
- Materiality of Omissions on Security Clearance Applications