Summary
A 45-year-old security assistant was denied a security clearance due to significant financial issues and intentional falsifications on her security forms. The denial was based on Guideline E (Personal Conduct), Guideline F (Financial Considerations), and Guideline J (Criminal Conduct).
The applicant was delinquent to 17 creditors, totaling approximately $78,411.34, and her house was foreclosed upon in October 1998. Despite advising the government of several debts in May 2000, she took no action to resolve them until filing for Chapter 7 bankruptcy in October 2002. Although she satisfied two insufficient funds checks for $127.80 in April 2003 following her bankruptcy discharge, she provided no evidence of sustained financial responsibility or counseling.
Additionally, the applicant intentionally falsified her security form in May 2000 by misrepresenting the number of delinquent creditors and debts. In February 2001, she again made false claims in a sworn statement, indicating she had paid off seven creditors and planned to arrange payments with others, without providing proof. These intentional falsifications contributed to the denial, establishing disqualifying behavior under personal and criminal conduct guidelines.
Why the Applicant Was Denied
- Applicant's indebtedness to 17 creditors totaling approximately $78,411.00 was not mitigated by her Chapter 7 bankruptcy discharge.
- Applicant failed to demonstrate a sustained track record of financial responsibility or healthy financial habits.
- Intentional falsifications of her security form and sworn statement established disqualifying behavior under personal and criminal conduct.
Conditions Referenced
- F1raisedA History of Not Meeting Financial Obligations
- F3raisedInability or Unwillingness to Satisfy Debts
- E2raisedThe Deliberate Omission, Concealment, or Falsification of Relevant and Material Facts
- E3raisedDeliberately Providing False or Misleading Information Concerning Relevant and Material Matters
- J1raisedAllegations or Admission of Criminal Conduct
Key Rule Quoted
“The granting (or continuance) of a security clearance under this Directive may only be done upon a finding that to do so is clearly consistent with the national interest.”
Procedural Posture
- SOR issuedJan 14, 2003
- Answer filedFeb 3, 2003
- Hearing held—Applicant elected to have the case decided on a written record.
- Decision dateJun 19, 2003
Cite For
- Denial Based on Significant Financial Irresponsibility Under Guideline F
- Disqualifying Conduct Due to Intentional Falsifications Under Guideline E
- Criminal Conduct Implications Related to Falsification Under Guideline J