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Summary

The applicant, a 48-year-old defense contractor, faced issues under Guideline E (Personal Conduct) and Guideline F (Financial Considerations) due to a history of financial irresponsibility and providing inaccurate information on his Security Clearance Application. The judge found that the applicant failed to demonstrate a stable financial outlook and did not take adequate steps to resolve his debts, leading to a denial of his security clearance.

Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: In the last 7 years, have you been over 180 days delinquent on any debt(s)? Applicant answered, "Yes" to this question and listed only one debt, which is the debt included on the SOR as 1.a. Clearly, at the time he completed the SCA, Applicant was or had been delinquent on all the other debts listed on the SOR, and he should have included all of these debts (2.a). Are you currently over 90 days delinquent on any debt(s)? Applicant answered, "Yes" to this question and again listed only the one debt, which he had included in his response to question #38. At the time he completed the SCA, Applicant was still delinquent on the debts listed as 1.d, 1.e, and 1.f., and he should have included all of these debts (2.b). This credit card debt to Creditor 1 is listed in the SOR in the amount of $2,153. Applicant testified that he has made no payment on this debt, and he currently owes the full amount stated (1.a). This debt to Creditor 2 is in the amount of $80. Applicant testified that this debt, for a delinquent parking ticket, has been resolved. He paid this debt in approximately 1998 to remove any restrictions from his motor vehicle (1.b). This debt to Creditor 2 is in the amount of $23. Applicant testified that this debt, also for a delinquent parking ticket, has been resolved. He paid this debt in approximately 1998 to remove any restrictions from his motor vehicle (1.c). This credit card debt to Creditor 3 is listed in the SOR in the amount of $2,570. Applicant testified that he has made no payment on this debt, and he currently owes the full amount stated (1.d). This debt to Creditor 4 for cable television services is listed in the SOR in the amount of $80. Applicant testified that he has made no payment on this debt, and he currently owes the full amount stated (1.e). This debt to Creditor 5, a department store, is in the amount of $810. Applicant testified that he has made no payment on this debt, and he currently owes the full amount stated (1.f).

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: Applicant has a history of financial difficulties and has taken virtually no action to resolve his debts; Applicant provided materially incorrect and incomplete information on his Security Clearance Application; The applicant failed to demonstrate a stable and mature outlook about his finances.

Why the Applicant Was Denied

• Applicant has a history of financial difficulties and has taken virtually no action to resolve his debts.
• Applicant provided materially incorrect and incomplete information on his Security Clearance Application.
• The applicant failed to demonstrate a stable and mature outlook about his finances.

Conditions Referenced

Key Rule Quoted

“"the clearly consistent standard indicates that security-clearance determinations should err, if they must, on the side of denials."”

Procedural Posture

• SOR issuedOct 9, 2003
• Answer filedNov 24, 2003Applicant requested a hearing.
• Hearing heldMar 15, 2004
• Decision dateJun 24, 2004

Cite For

• Financial Irresponsibility Leading to Security Clearance Denial
• Inaccurate Information on Security Clearance Application as a Disqualifying Factor
• Failure to Demonstrate Financial Stability as a Basis for Clearance Denial