Summary
The 46-year-old applicant, a retired U.S. Army veteran, faced security clearance denial due to significant financial issues and deliberate omissions on his security clearance application. He had over $35,000 in unresolved debts and failed to disclose relevant financial information, leading to a finding against him under Guideline E (Personal Conduct) and Guideline F (Financial Considerations).
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: In the last 7 years, have you had any judgments against you that have not been paid? (2.a). Are you currently over 90 days delinquent on any debts? (2.b). Delinquent credit card acct $1917 (1.a). Delinquent credit card acct $13,347 (1.b). Delinquent furniture acct $7,104 (1.c). Delinquent credit card acct $2,330 (1.d). Unpaid 1998 judgment $7,733 (1.e). Unpaid federal taxes $3,500 (1.f). Income exceeds monthly expenses $723 (1.g).
The judge denied the clearance. The government raised disqualifying conditions DC 1, DC 2, DC 3. The judge applied mitigating conditions MC 6. The decision turned on the following: Applicant had over $35,000 in delinquent debts and failed to resolve them until filing for Chapter 13 bankruptcy after the SOR was issued; Applicant deliberately omitted material information regarding his financial status from his security clearance application, indicating a lack of candor.
Why the Applicant Was Denied
- Applicant had over $35,000 in delinquent debts and failed to resolve them until filing for Chapter 13 bankruptcy after the SOR was issued.
- Applicant deliberately omitted material information regarding his financial status from his security clearance application, indicating a lack of candor.
Conditions Referenced
- DC 1appliedFinancial Considerations - History of Not Meeting Financial Obligations
- DC 2appliedPersonal Conduct - Deliberate Omission of Relevant Information
- DC 3appliedFinancial Considerations - Unable or Unwilling to Satisfy Debts
- MC 6rejectedFinancial Considerations - Initiated Efforts to Resolve DebtsApplicant's efforts to file for bankruptcy were not timely and did not demonstrate good faith.
Key Rule Quoted
“"No one has a 'right' to a security clearance."”
Procedural Posture
- SOR issuedJan 30, 2003
- Answer filedMar 18, 2003
- Hearing heldSep 11, 2003
- Decision dateOct 10, 2003
Cite For
- Denial Based on Financial Irresponsibility Under Guideline F
- Deliberate Omission of Material Facts Under Guideline E
- Insufficient Evidence of Good Faith Efforts to Resolve Financial Issues