Summary
The applicant, a 53-year-old senior systems engineer, faced security clearance denial under Guideline E (Personal Conduct) and Guideline F (Financial Considerations) due to significant unresolved financial obligations, including a state tax liability exceeding $28,000, and deliberate omissions on his security clearance application regarding his debts. The judge found the applicant's explanations for these omissions not credible, leading to the conclusion that granting a clearance was not consistent with national security interests.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant failed to list the garnishment to collect his $28,000.00 state tax liability, a matter relevant and material to a determination of his security worthiness (2.a). Applicant answered 'no' to the question regarding being over 180 days delinquent on any debt(s), despite having multiple delinquent debts (2.b). Applicant has a state tax liability of more than $28,000.00 for tax year 1996 that still has not been paid or settled (1.a). In August 1999, an unpaid $32.00 medical bill owed by Applicant was transferred to a debt collector. On May 27, 2003, Applicant paid the debt (1.b). In October 2000, a $448.00 debt to a telephone company that Applicant had incurred was transferred to a debt collector. The debt has not been paid or otherwise settled (1.c). Before Applicant left his former state of residence, he incurred a $39.00 debt to a gas and electric company that he did not pay. He paid the debt on February 27, 2004 (1.d). In October 1998, Applicant opened a credit account with a department store and incurred a $1,675.00 debt that was charged off as a bad debt and transferred to a debt collector. In addition, he has another delinquent account in the amount of $199.00 with the same department store. The debts have not been paid or otherwise settled (1.e).
The judge denied the clearance. The government raised disqualifying conditions E2.A6.1.2.1, E2.A6.1.2.3, E2.A5.1.2.2. The decision turned on the following: The applicant failed to mitigate significant financial concerns, including a state tax liability of over $28,000; The applicant deliberately omitted relevant financial information from his security clearance application, undermining his credibility; The applicant's explanations for his omissions were deemed not credible, as he had previously discussed the garnishment with a DSS investigator.
Why the Applicant Was Denied
- The applicant failed to mitigate significant financial concerns, including a state tax liability of over $28,000.
- The applicant deliberately omitted relevant financial information from his security clearance application, undermining his credibility.
- The applicant's explanations for his omissions were deemed not credible, as he had previously discussed the garnishment with a DSS investigator.
Conditions Referenced
- E2.A6.1.2.1raisedHistory of Not Meeting Financial Obligations
- E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts
- E2.A5.1.2.2raisedDeliberate Omission, Concealment, or Falsification of Relevant and Material Facts
Key Rule Quoted
“Any doubt as to whether access to classified information is clearly consistent with national security will be resolved in favor of national security.”
Procedural Posture
- SOR issuedSep 8, 2003
- Answer filedOct 2, 2003
- Hearing heldFeb 18, 2004
- Decision dateJun 24, 2004
Cite For
- Failure to Mitigate Financial Obligations Under Guideline F
- Deliberate Omission of Material Facts Under Guideline E
- Credibility Issues Related to Applicant's Explanations for Financial Conduct