Summary
A 50-year-old system analyst for a defense contractor was denied a security clearance due to significant financial problems and dishonesty on his application, falling under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The applicant owed fourteen creditors, with some debts dating back to 1992, and currently owed approximately $9,000. He admitted to not filing state and federal income tax returns for 1999 and 2000, owing $3,750 for those years, and had a history of not filing or paying taxes, including being sued for unpaid taxes from 1992 and 1995. His financial issues included a 1996 bankruptcy discharge of $35,395 in debts, nine of which were from insufficient funds checks.
Beyond financial mismanagement, the applicant exhibited a pattern of mendacity. He deliberately omitted, concealed, or misrepresented material facts on his security clearance application, including denying a rent debt to a Defense Security Service Special Agent and failing to disclose a 1999 automobile repossession and a lawsuit for back rent. The judge found that the applicant's lack of truthfulness and inability to manage his debts raised serious concerns about his security eligibility.
Despite stating a willingness to repay debts, the applicant offered no credible plan or commitment to do so, and no evidence of payments was submitted. The combination of extensive, long-standing financial irresponsibility and a clear pattern of dishonesty on official forms and to investigators led to the denial of his security clearance.
Why the Applicant Was Denied
- Applicant owed fourteen creditors, with debts dating back to 1992.
- Applicant made material omissions on his security clearance application and was not truthful during the investigation.
- Applicant admitted he cannot manage his finances and does not pay his bills, despite a declared willingness to repay debts.
- No credible plan or commitment to repay debts was offered by the applicant.
- The applicant's lack of truthfulness raised grave questions about his security eligibility.
Conditions Referenced
- F.1raisedA History of Not Meeting Financial Obligations.
- F.3raisedInability or Unwillingness to Satisfy Debts.
- E.2appliedThe Deliberate Omission, Concealment, Falsification or Misrepresentation of Relevant and Material Facts.
- E.3appliedDeliberately Providing False or Misleading Information Concerning Relevant and Material Matters.
- E.4appliedPersonal Conduct or Concealment of Information That Increases Vulnerability to Coercion.
Key Rule Quoted
“Under the provisions of Executive Order 10865 as amended and the Directive, a decision to grant or continue an applicant's clearance may be made only upon an affirmative finding that to do so is clearly consistent with the national interest.”
Procedural Posture
- SOR issuedOct 15, 2002
- Answer filedNov 8, 2002Applicant requested decision on the written record.
- Hearing held—No hearing; decision made on written record.
- Decision dateMay 14, 2003
Cite For
- Financial Irresponsibility and Its Impact on Security Clearance Eligibility
- Material Omissions and Dishonesty in Security Clearance Applications
- The Importance of Credible Financial Management Plans in Clearance Determinations