Summary
A 51-year-old defense contractor employee was denied a security clearance due to concerns under Guidelines E (Personal Conduct), F (Financial Considerations), and J (Criminal Conduct). The denial stemmed from a combination of financial irresponsibility and the falsification of her financial history on a Security Clearance Application (SF 86).
The applicant had multiple delinquent credit accounts, each totaling approximately $22,000, and two vehicle repossessions. Additionally, she incurred medical debts that should have been covered by insurance, some of which were reduced to judgment. While some debts were attributed to circumstances beyond her control, the judge found that the applicant failed to take effective action to address her indebtedness and lacked the means to do so in the foreseeable future, making payments on only two debts totaling about $2,300.
Crucially, the applicant falsified her SF 86 by denying property repossessions and accounts 90 or 180 days past due within the last seven years. This deliberate omission, which violates 18 U.S.C. §1001, raised significant concerns about her reliability and trustworthiness, ultimately leading to the denial of her security clearance.
Why the Applicant Was Denied
- Applicant's financial irresponsibility was not mitigated by circumstances beyond her control due to her own actions.
- Applicant took no effective action to address her indebtedness and lacks the means to do so in the foreseeable future.
- Applicant's falsification of her financial history indicated a lack of reliability and trustworthiness.
Conditions Referenced
- E2.A5.1.2.2raisedDeliberate Omission, Concealment, or Falsification of Relevant and Material Facts
- E2.A6.1.2.1raisedA History of Not Meeting Financial Obligations
- E2.A10.1.2.1raisedAllegations or Admissions of Criminal Conduct
- E2.A6.1.3.3rejectedConditions That Resulted in the Behavior Were Largely Beyond the Person's ControlWhile some circumstances were beyond her control, the applicant's own irresponsibility contributed significantly to her financial issues.
- E2.A5.1.3notedConditions That Could Mitigate Security Concerns
- E2.A10.1.3notedConditions That Could Mitigate Security Concerns
Key Rule Quoted
“"the clearly consistent standard indicates that security-clearance determinations should err, if they must, on the side of denials."”
Procedural Posture
- SOR issuedFeb 25, 2002
- Answer filedMar 11, 2002
- Hearing heldApr 25, 2002
- Decision dateMay 15, 2002
Cite For
- Denial of Clearance Due to Financial Irresponsibility Under Guideline F
- Falsification of Financial History Impacting Trustworthiness Under Guideline E
- Criminal Conduct Implications Related to Financial Misrepresentation Under Guideline J