Summary
The applicant, a 58-year-old information supervisor for a defense contractor, faced security concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations) due to over $39,000 in delinquent debts and a failure to disclose these debts on his security clearance application. The judge found that the applicant's refusal to allocate funds to pay off debts until a security clearance was granted demonstrated a lack of good faith effort to resolve financial issues, leading to a denial of the clearance.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant falsified his SCA by deliberately failing to disclose that he had delinquent debts (2.a). Applicant has approximately $39,000 in delinquent debts (1.a). Applicant has approximately $39,000 in delinquent debts (1.b). Applicant has approximately $39,000 in delinquent debts (1.c). Applicant has approximately $39,000 in delinquent debts (1.d). Applicant has approximately $39,000 in delinquent debts (1.e). The debt alleged in ¶ 1.f. appears to have been paid (1.f). Applicant has approximately $39,000 in delinquent debts (1.g). Applicant has approximately $39,000 in delinquent debts (1.j). The debt alleged in ¶ 1.k. appears to be the same debt alleged in ¶ 1.d (1.k). Applicant has approximately $39,000 in delinquent debts (1.l). Applicant has approximately $39,000 in delinquent debts (1.m).
The judge denied the clearance. The government raised disqualifying conditions E2.A6.1.2.1, E2.A6.1.2.3, E2.A5.1.1. The judge applied mitigating conditions E2.A6.1.3.3, E2.A6.1.3.4, E2.A6.1.3.6. The decision turned on the following: The applicant failed to mitigate security concerns related to his delinquent debts; He deliberately failed to report his debts on his security clearance application, demonstrating questionable judgment and lack of candor; The applicant's refusal to use available funds to pay off debts until his clearance was granted indicated a lack of good faith effort to resolve financial issues.
Why the Applicant Was Denied
- The applicant failed to mitigate security concerns related to his delinquent debts.
- He deliberately failed to report his debts on his security clearance application, demonstrating questionable judgment and lack of candor.
- The applicant's refusal to use available funds to pay off debts until his clearance was granted indicated a lack of good faith effort to resolve financial issues.
Conditions Referenced
- E2.A6.1.2.1raisedFinancial Considerations
- E2.A6.1.2.3raisedFinancial Considerations
- E2.A5.1.1raisedPersonal Conduct
- E2.A6.1.3.3rejectedFinancial ConsiderationsSome conditions leading to delinquent debts were beyond the applicant's control, but this did not mitigate the overall concerns.
- E2.A6.1.3.4rejectedFinancial ConsiderationsNo clear indications that financial problems were being resolved.
- E2.A6.1.3.6rejectedFinancial ConsiderationsThe applicant did not make a good-faith effort to resolve debts.
Key Rule Quoted
“An applicant "has the ultimate burden of demonstrating that it is clearly consistent with the national interest to grant or continue his security clearance."”
Procedural Posture
- SOR issuedSep 25, 2003
- Answer filedOct 22, 2003
- Hearing heldMar 23, 2004
- Decision dateJun 3, 2004
Cite For
- Denial of Clearance Due to Failure to Disclose Financial Issues Under Guideline E
- Lack of Good Faith Effort to Resolve Debts Under Guideline F
- Questionable Judgment in Financial Management and Personal Conduct