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Summary

The applicant, a 61-year-old naturalized U.S. citizen and defense contractor, faced security clearance denial primarily due to unresolved financial issues totaling approximately $20,000, despite claims of improved financial management. The judge found that the applicant failed to demonstrate sufficient control over his finances and did not seek financial counseling, although he mitigated concerns related to personal conduct and foreign influence. Ultimately, the applicant's financial irresponsibility led to the denial of his security clearance.

Under Guideline B (Foreign Influence), Guideline E (Personal Conduct), and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: An immediate family member, or a person to whom the individual has close ties of affection or obligation, is a citizen of, or resident or present in, a foreign country (3.a). The concern: A security risk may exist when an individual's immediate family, including cohabitants, and other persons to whom he or she may be bound by affection, influence, or obligation are: (1) not citizens of the United States or (2) may be subject to duress (3.b). The deliberate omission, concealment, or falsification of relevant and material facts from any personnel security questionnaire, personal history statement, or similar form used to conduct investigations, determine employment qualifications, award benefits or status, determine security clearance eligibility or trustworthiness, or award fiduciary responsibilities (2.a). A debt of approximately $15,000 is due to Creditor #1, a bank, after a default judgment was entered against him in May 1994 which he has not paid (1.a). Applicant disputes a debt of approximately $2,600 to Creditor #2, a delinquent account placed for collection which he has not paid (1.b). Applicant disputes a debt of approximately $2,500 to Creditor #3 which he has not paid (1.c). Applicant has paid a debt of $327 to Creditor #4 (1.d). Applicant's debt of $783 was charged off by Creditor #5 for utilities. He plans to pay that debt, but has not yet done so (1.e).

The judge denied the clearance. The government raised disqualifying conditions F.1, F.3, E.2, B.1. The judge applied mitigating conditions F.3, E.2, B.1. The decision turned on the following: The applicant has a history of financial problems and has shown an inability or unwillingness to satisfy his debts; The applicant failed to take sufficient action to resolve his financial obligations, even after being employed for several years; The applicant did not seek financial counseling or legal advice to address his debts.

Why the Applicant Was Denied

• The applicant has a history of financial problems and has shown an inability or unwillingness to satisfy his debts.
• The applicant failed to take sufficient action to resolve his financial obligations, even after being employed for several years.
• The applicant did not seek financial counseling or legal advice to address his debts.

Conditions Referenced

Key Rule Quoted

“The responsibility for producing evidence initially falls on the Government to demonstrate that it is not clearly consistent with the national interest to grant or continue Applicant's access to classified information.”

Procedural Posture

• SOR issuedOct 15, 2001
• Answer filedNov 16, 2001Notarized response to SOR.
• Hearing heldApr 18, 2002Hearing conducted with Department Counsel.
• Decision dateJun 18, 2002

Cite For

• Denial of Security Clearance Due to Unresolved Financial Obligations Under Guideline F
• Mitigation of Personal Conduct Concerns Despite Omission of Financial Judgment Under Guideline E
• Foreign Influence Concerns Mitigated by Applicant's Long-term U.S. Citizenship and Family History Under Guideline B.