Summary
The applicant, a 48-year-old former Navy disbursing clerk, faced security clearance denial under Guideline E (personal conduct) and Guideline F (financial considerations) due to a history of financial irresponsibility, including over $25,000 in delinquent accounts and failure to disclose these debts in his Security Clearance Application. The judge found that the applicant did not mitigate the security concerns stemming from his financial issues and lack of candor.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant failed to disclose his delinquent accounts, as required, in a Security Clearance Application, Standard Form 86, he executed on June 23, 1999 (1.a). Applicant answered "No" to question 38: Your Financial Delinquencies - 180 Days - In the last 7 years, have you ever been over 180 days delinquent on any debt(s)? and question 39: Your Financial Delinquencies - 90 Days - Are you currently over 90 days delinquent on any debt(s)? (1.b). a collection account in the amount of $9,856.00 (1.a). a charged off account in the amount of $6,433.00 (1.b). a charged off account in the amount of $2,733.00 (1.c). a charged off account in the amount of $2,123.00 (1.d). a paid account/zero balance, account closed at consumers request (1.e). a bad debt in the amount of $8,513.00 (1.f). a bad debt in the amount of $2,234.00 (1.g). this is the same account listed under subparagraph 1.e. and described in footnote 5 (1.h).
The judge denied the clearance. The government raised disqualifying conditions DC 1, DC 2, DC 3. The decision turned on the following: Applicant has over $25,000 in delinquent accounts, indicating financial irresponsibility; Applicant failed to disclose his delinquent accounts in his Security Clearance Application, which undermined trust; Applicant did not provide evidence to support his claims of non-liability for the debts.
Why the Applicant Was Denied
- Applicant has over $25,000 in delinquent accounts, indicating financial irresponsibility.
- Applicant failed to disclose his delinquent accounts in his Security Clearance Application, which undermined trust.
- Applicant did not provide evidence to support his claims of non-liability for the debts.
Conditions Referenced
- DC 1appliedA History of Not Meeting Financial Obligations
- DC 2appliedThe Deliberate Omission, Concealment, or Falsification of Relevant and Material Facts
- DC 3appliedInability or Unwillingness to Satisfy Debts
Key Rule Quoted
“No one has a right to a security clearance and the clearly consistent standard indicates that security clearance determinations should err, if they must, on the side of denials.”
Procedural Posture
- SOR issuedOct 10, 2002
- Answer filedDec 31, 2002Applicant requested a decision based on the written record.
- Hearing held—No hearing was held.
- Decision dateDec 3, 2003
Cite For
- Failure to Disclose Financial Delinquencies Under Guideline E
- Significant Unpaid Debts as a Disqualifying Condition Under Guideline F
- Lack of Candor Undermining Trustworthiness for Security Clearance