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Summary

Applicant is a 61-year-old defense contractor employee with a history of financial instability and a false statement on his Security Clearance Application (SF 86). He denied being over 180 days delinquent on debts, which was proven false. The judge found that the applicant failed to mitigate security concerns related to his financial obligations and dishonesty, resulting in a denial of his clearance.

Under Guideline E (Personal Conduct), Guideline F (Financial Considerations), and Guideline J (Criminal Conduct), the Statement of Reasons alleged the following: On his Security Clearance Application (SF 86), Applicant falsely denied that he had been over 180 days delinquent on any debts during the previous 7 years (2.a). A bad debt to a credit card company for about $946.00, charged off in about January 2000 (1.a). A bad debt to a credit card company for about $111.00, charged off in about June 2000 (1.b). A bad debt to a bank for about $320.00 charged off in about January 2000 (1.c). A bad debt to a telephone services company for about $275.00 charged off in about January 1998 (1.d). A bad debt to a financial services company for about $2,233.00 charged off in about October 2000 (1.e). A delinquent account to a mail order business for about $201.00 referred for collection in about February 2001 (1.f). A delinquent debt to a financial services company for about $466.00 referred to a collection agency in about July 1999 (1.g). A bad debt for $82.00 to an emergency room placed for collection in September 2001 (1.i). A delinquent account to a financial services company for about $228.00 referred to a collection agency in about March 2001 (1.j). A delinquent account to a retailer for about $3,992.00 referred for collection in about March 2003 (1.k). Applicant's misrepresentation on his SF 86 was a false official statement in violation of the federal criminal code, specifically 18 U.S.C. § 1001, and constitutes a single serious crime under ¶ E2.A10.1.2.2 (3.a).

The judge denied the clearance. The government raised disqualifying conditions E2.A6.1.2, E2.A6.1.2.3, E2.A5.1.2.2, E2.A10.1.2.2. The judge applied mitigating conditions E2.A6.1.3.6, E2.A5.1.3.2, E2.A10.1.3.2. The decision turned on the following: Applicant has a history of failing to meet financial obligations; Applicant falsely denied being over 180 days delinquent on debts in his SF 86; The applicant did not provide evidence of efforts to resolve his debts or mitigate the concerns raised.

Why the Applicant Was Denied

• Applicant has a history of failing to meet financial obligations.
• Applicant falsely denied being over 180 days delinquent on debts in his SF 86.
• The applicant did not provide evidence of efforts to resolve his debts or mitigate the concerns raised.

Conditions Referenced

Key Rule Quoted

“"The adjudicative process is an examination of a sufficient period of a person's life to make an affirmative determination that the person is eligible for a security clearance."”

Procedural Posture

• SOR issuedAug 26, 2003
• Answer filedSep 22, 2003Applicant elected to have the case decided on the written record.
• Hearing held—No hearing; decided on written record.
• Decision dateJul 26, 2004

Cite For

• Denial Based on Financial Instability Under Guideline F
• False Statements on Security Clearance Applications Under Guideline E
• Criminal Conduct Related to False Statements Under Guideline J