Summary
A 47-year-old defense contractor employee was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The denial stemmed from a history of unresolved financial difficulties and intentional misrepresentations on her Security Clearance Application (SCA).
The applicant had significant outstanding tax debts, including federal income taxes from 1994 through 2002, totaling $8,868.27 as of May 1, 1998, which led to wage garnishment. She also owed approximately $19,848 in state income taxes for tax years 1993 through 2002, despite recently beginning payments. Additionally, she filed for Chapter 13 bankruptcy three times between 1995 and 1997, but all cases were dismissed without discharging any debts. While some debts, such as a 1997 judgment for $1,122 and several credit card debts, were eventually resolved through garnishment or settlement, these issues contributed to the financial concerns.
Crucially, the applicant provided false information on her SCA. She answered "No" to questions about unpaid judgments, being over 180 days delinquent on debts, and being a party to public record civil court actions, despite having an outstanding 1997 judgment and being delinquent on multiple debts at the time. The judge found that her financial obligations were not met and that she intentionally provided false information, leading to the denial of her security clearance.
Why the applicant was denied
- The applicant has a long history of unresolved financial difficulties, including significant debts for federal and state taxes.
- The applicant intentionally provided false information on her Security Clearance Application regarding her financial situation.
Conditions referenced
- E2.A6.1.2.1raisedA History of Not Meeting Financial Obligations
- E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts
- E2.A5.1.2.2appliedThe Deliberate Omission, Concealment, Falsification or Misrepresentation of Relevant and Material Facts
Key rule quoted
“When such an individual intentionally falsifies material facts on a security clearance application, it is extremely difficult to conclude that she nevertheless possesses the judgment, reliability and trustworthiness required of clearance holders.”
Procedural posture
- SOR issuedAug 27, 2003
- Answer filedOct 14, 2003Applicant responded to SOR allegations.
- Hearing heldFeb 26, 2004Hearing conducted with no witnesses called.
- Decision dateMar 30, 2004
Cite for
- Denial Based on Unresolved Financial Obligations Under Guideline F
- Intentional Misrepresentation on Security Clearance Application Under Guideline E
- Lack of Mitigating Conditions for Financial Difficulties and Personal Conduct Issues