Summary
The applicant, a 49-year-old information technology specialist, faced security clearance denial under Guideline F for financial considerations and Guideline E for personal conduct. The applicant's history of financial problems, including a dismissed Chapter 13 bankruptcy and multiple delinquent debts, was deemed insufficiently mitigated, leading to the denial of clearance.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant falsified his security-clearance application by failing to disclose three delinquent debts in response to a question asking whether he had any debts more than 180-days past due within the last seven years (2.a). You are indebted to VA Power Systems in the approximate amount of $958.00 for a delinquent debt that was referred to collection to NCO Financial. As of approximately January 1999, this debt had not been paid (1.a). You are indebted to VA Power Systems in the approximate amount of $958.00 for a delinquent debt that was referred to collection to NCO Financial. As of approximately January 1999, this debt had not been paid (1.b). You are indebted to a bank credit services with an overdue balance of $220.00 (1.c). You are indebted to a bank for $601.00 (1.d). You are indebted to an electronics store for $1,150.00 that was placed for collection and taken over by a bank (1.e). You are indebted for an unpaid charged off bad debt for $557.00 (1.f). You are indebted to a finance company with an overdue balance of $169.00 (1.g). You are indebted for four student loans accounts totaling more than $11,000.00, all of which are delinquent (1.h). You are indebted for four student loans accounts totaling more than $11,000.00, all of which are delinquent (1.i). You are indebted for four student loans accounts totaling more than $11,000.00, all of which are delinquent (1.j). You are indebted for four student loans accounts totaling more than $11,000.00, all of which are delinquent (1.k). You are indebted for an unpaid judgment obtained against you for $8,702.00 (1.l). You filed a Chapter 13 bankruptcy case in 2002 that was dismissed (1.m).
The judge denied the clearance. The government raised disqualifying conditions DC 1, DC 3. The decision turned on the following: The applicant has a history of significant unpaid debts, including a dismissed Chapter 13 bankruptcy case and an unpaid judgment of approximately $8,700; The applicant failed to demonstrate a good-faith effort to resolve his financial obligations, with many debts remaining unpaid or unresolved; The applicant's financial irresponsibility raises concerns about his ability to safeguard classified information.
Why the Applicant Was Denied
- The applicant has a history of significant unpaid debts, including a dismissed Chapter 13 bankruptcy case and an unpaid judgment of approximately $8,700.
- The applicant failed to demonstrate a good-faith effort to resolve his financial obligations, with many debts remaining unpaid or unresolved.
- The applicant's financial irresponsibility raises concerns about his ability to safeguard classified information.
Conditions Referenced
- DC 1raisedA History of Not Meeting Financial Obligations;
- DC 3raisedInability or Unwillingness to Satisfy Debts;
Key Rule Quoted
“"The only purpose of a security-clearance decision is to decide if it is clearly consistent with the national interest to grant or continue a security clearance for an applicant."”
Procedural Posture
- SOR issuedJul 17, 2003
- Answer filedAug 8, 2003
- Hearing held—Applicant requested a decision based on a written record.
- Decision dateSep 16, 2004
Cite For
- Denial of Clearance Due to Unresolved Financial Issues Under Guideline F
- Insufficient Mitigation of Financial Irresponsibility
- Consideration of Personal Conduct Under Guideline E in Relation to Financial Disclosures