Summary
A 50-year-old defense contractor and Navy retiree was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The applicant faced allegations of excessive indebtedness and deliberate falsifications on his security clearance application.
Specifically, the applicant intentionally falsified material aspects of his personal background, failing to disclose an unpaid judgment for $10,060.00 and that he was 180 days delinquent with three other creditors. He admitted to an approximately $195.00 debt from an insufficient funds check in February 1995, but denied an approximate $10,060.00 child support arrearage. Additional debts included a $382.35 judgment from August 1997, a $451.00 collection account from 1998, a $442.00 collection account from March 2000, $113.00 for two utility accounts from February and April 2000, an $80.00 charged-off debt, and $180.00 for two unpaid parking tickets.
Despite a May 1999 personal financial statement showing a monthly remainder of $1,305.00 after expenses, the judge found insufficient evidence of reform or rehabilitation. The denial was based on the applicant's excessive indebtedness, failure to demonstrate financial responsibility, and intentional falsification of material facts on his application regarding outstanding debts and judgments.
Why the Applicant Was Denied
- The applicant had excessive indebtedness and failed to demonstrate sufficient evidence of financial responsibility.
- The applicant intentionally falsified material facts on his security clearance application regarding outstanding debts and judgments.
Conditions Referenced
- F1raisedA History of Not Meeting Financial Obligations
- F3raisedInability or Unwillingness to Satisfy Debts
- E2raisedThe Deliberate Omission, Concealment, or Falsification of Relevant and Material Facts
- F6rejectedThe Individual Initiated a Good Faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant's efforts were insufficient to mitigate the financial concerns.
Key Rule Quoted
“The adjudicative process is an examination of a sufficient period of a person's life to make an affirmative determination that the person is an acceptable security risk.”
Procedural Posture
- SOR issuedOct 7, 2002
- Answer filedNov 13, 2002
- Hearing heldApr 22, 2003
- Decision dateMay 20, 2003
Cite For
- Excessive Indebtedness as a Disqualifying Factor Under Guideline F
- Intentional Falsification of Information on Security Clearance Applications Under Guideline E
- Insufficient Evidence of Rehabilitation in Financial Matters Leading to Denial of Clearance.