Summary
A 49-year-old employee of a security firm, working for a defense agency, was denied a security clearance based on Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The applicant filed for Chapter 7 bankruptcy in 2000, listing assets of $2,900 and liabilities of $75,599.26. Despite the bankruptcy discharge, as of April 2003, he still owed nearly $13,000 on a vehicle that had been listed as a $7,000 debt in the bankruptcy.
Additionally, the applicant admitted to owing over $45,000 to the Social Security Administration and almost $6,000 in delinquent child support payments to a county government agency. In total, he still owed over $50,000 to federal and state agencies in 2003. His monthly expenses also exceeded his income by $84.
A significant factor in the denial was the applicant's failure to report an automobile repossession on his security clearance application (SF 86), as required by Question 35. He provided no plausible explanation for this omission. The denial was based on his failure to report the repossession, indicating questionable judgment, and his inability to meet financial obligations, particularly significant debts to government entities. The applicant did not provide sufficient reasons for applying mitigating conditions regarding his financial issues.
Why the Applicant Was Denied
- Applicant failed to report an automobile repossession on his SF 86, indicating questionable judgment and unreliability.
- Applicant's financial situation included significant debts to government entities, demonstrating an inability to meet financial obligations.
- Applicant did not provide sufficient reasons for applying mitigating conditions regarding his financial issues.
Conditions Referenced
- E2.A5.1.1raisedQuestionable Judgment, Unreliability, and Unwillingness to Comply with Rules and Regulations
- E2.A5.1.2.2raisedDeliberate Omission, Concealment, or Falsification of Relevant and Material Facts
- E2.A6.1.1raisedFinancially Overextended Individuals Are at Risk of Engaging in Illegal Acts
- E2.A6.1.2.1raisedHistory of Not Meeting Financial Obligations
- E2.A6.1.2.3raisedEvidence of Inability or Unwillingness to Satisfy Debts
Key Rule Quoted
“"[N]o one has a 'right' to a security clearance." Department of the Navy v. Egan, 484 U.S. 518, 528 (1988).”
Procedural Posture
- SOR issuedSep 30, 2003
- Answer filedOct 31, 2003Applicant elected to have the case decided on the written record.
- Hearing held—No hearing was held.
- Decision dateSep 17, 2004
Cite For
- Failure to Disclose Financial Issues Under Guideline F
- Questionable Judgment and Reliability Under Guideline E
- Impact of Financial Difficulties on Security Clearance Eligibility