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Summary

The Applicant, a 44-year-old employed by a defense contractor, sought a Secret-level security clearance but was denied due to significant financial issues and intentional falsification of his personal history regarding a DUI conviction. The judge found that the Applicant's financial situation, including nearly $90,000 in non-dischargeable debts, and his lack of a consistent payment history demonstrated poor judgment and unreliability.

Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: On July 17, 2002, the Applicant completed an official DoD questionnaire in which he stated that he had never been charged or convicted for an offense related to alcohol. This statement was a false answer to a material question pertaining to the Applicant's police record (2.a). The Applicant admits owing this credit card company approximately $2,173.00. At one point the Applicant made an arrangement with this creditor to pay off the debt for a lesser amount. He was unable to fulfill the agreement, however. The Applicant has paid $300.00 towards this account since 1999. His intent is to pay them $100.00 a month until he pays off the debt (1.a). The Applicant paid this debt off in February 2003. This allegation is found for the Applicant (1.b). A civil claim in the amount of $200.00 has been satisfied. This allegation is found for the Applicant (1.c). The Applicant attended school during the 1990s using student loans. The Applicant testified that the lender lost a $900.00 payment that the Applicant sent in. He refused to send any more money until they found his payment. By the time they did, due to employment difficulties, the rest of his loans had gone into default and he had to consolidate them. All of his loans have been consolidated under a loan from the William D. Ford Federal Direct Loan Program. The Applicant currently owes $38,379.64. Interest will continue to accrue for the year in an approximate amount of $1,305.44 (1.d). The Applicant pays child support for three children. He pays $240.00 a month for current charges. In addition, as of June 1, 2003, the Applicant owed $51,685.25 in past due child support on two court orders. The Applicant has agreed to have $1,009.33 automatically deducted from his pay every month for current and past due child support (1.e). In addition to the listed debts, the Applicant revealed that he owes approximately $600.00 to his State's Employment Development Department for an unemployment benefit overpayment. He has recently paid $75.00 towards this account (1.f).

The judge denied the clearance. The government raised disqualifying conditions E2.A2.2., F2.A1.1., F2.A1.3.. The decision turned on the following: The Applicant has significant financial problems, including over $50,000 in past due child support and $38,000 in student loans, with no consistent payment history; The Applicant intentionally falsified material information on his security clearance application regarding a DUI conviction.

Why the Applicant Was Denied

• The Applicant has significant financial problems, including over $50,000 in past due child support and $38,000 in student loans, with no consistent payment history.
• The Applicant intentionally falsified material information on his security clearance application regarding a DUI conviction.

Conditions Referenced

Key Rule Quoted

“The Government relies heavily upon the integrity and honesty of clearance holders, and it is a negative factor for security clearance purposes where an Applicant has deliberately provided false information about material aspects of his or her personal background.”

Procedural Posture

• SOR issuedJan 10, 2003
• Answer filedFeb 12, 2003
• Hearing heldJun 26, 2003
• Decision dateNov 4, 2003

Cite For

• Financial Considerations Under Guideline F
• Personal Conduct Issues Under Guideline E
• Impact of Falsification on Security Clearance Eligibility