Summary
The applicant, a 51-year-old employee of a defense contractor, faced security clearance denial due to significant financial issues, including numerous delinquent debts and a federal tax lien, as well as a history of criminal conduct and falsification of his security clearance application. The judge found that the applicant failed to mitigate the security concerns raised under Guidelines E, F, and J.
Under Guideline E (Personal Conduct), Guideline F (Financial Considerations), and Guideline J (Criminal Conduct), the Statement of Reasons alleged the following: Applicant falsified his SCA by deliberately denying he had been convicted of any felony offenses (2.a). Applicant falsified his SCA by deliberately denying any alcohol or drug-related offenses (2.b). Applicant denied having his wages garnished in the previous seven years (2.c). Applicant denied having any debts in the previous seven years that were delinquent more than 180 days or currently delinquent more than 90 days (2.d). Applicant denied having any unpaid judgments in the previous seven years (2.e). Housing Authority--$232 In collection--not paid (1.a). Dept. Store--$1,023 In collection--not paid--claims credit limit of $500 (1.b). Dept. Store--$500 Charged off in 1997--$861--not paid (1.c). Dept Store--$294 Charged off in 1998--claims paid, but no proof (1.d). Bank debt--$979 Charged off in 2000--unpaid (1.e). Bank debt $5,017 Debt after sale of repossessed vehicle in 1997--still not paid (1.f). Telephone--$49 Claims it paid--no evidence (1.j). Bank--$968 Charged off --unpaid (1.k). Finance Co--$405 Unpaid (1.l). Collection acct--$476 Unaware of debt--unpaid (1.m). Charged off auto acct--$11,885 Unpaid (1.n). Merchandise Co--$2,537 Charged off and unpaid (1.o). U.S. taxes--$13,569 Payment plan--no evidence of payment (1.p). Judgment--$985 Failure to pay rent--contests--unpaid (1.q). Applicant violated 18 U.S.C. § 1001 by deliberately making false statements on his SCA (3.a).
The judge denied the clearance. The government raised disqualifying conditions E2.A6.1.2.1, E2.A6.1.2.3, E2.A5.1.1, E2.A10.1.1, E2.A10.1.2.1. The decision turned on the following: The applicant had numerous delinquent debts totaling approximately $18,000 and a federal tax lien of over $13,000; The applicant knowingly and willfully falsified his security clearance application by denying past criminal conduct and financial issues; The applicant demonstrated a lack of awareness regarding his financial obligations and failed to provide evidence of mitigating circumstances.
Why the Applicant Was Denied
- The applicant had numerous delinquent debts totaling approximately $18,000 and a federal tax lien of over $13,000.
- The applicant knowingly and willfully falsified his security clearance application by denying past criminal conduct and financial issues.
- The applicant demonstrated a lack of awareness regarding his financial obligations and failed to provide evidence of mitigating circumstances.
Conditions Referenced
- E2.A6.1.2.1raisedFinancial ConsiderationsThe applicant has a history of not meeting his financial obligations.
- E2.A6.1.2.3raisedFinancial ConsiderationsThe applicant is unable or unwilling to satisfy his debts.
- E2.A5.1.1raisedPersonal ConductThe applicant's conduct involved questionable judgment and lack of candor.
- E2.A10.1.1raisedCriminal ConductThe applicant's history of criminal activity creates doubt about his judgment and reliability.
- E2.A10.1.2.1raisedCriminal ConductThe applicant committed serious criminal offenses by making false statements.
Key Rule Quoted
“"No one has a 'right' to a security clearance."”
Procedural Posture
- SOR issuedNov 21, 2003
- Answer filedFeb 13, 2004
- Hearing heldSep 16, 2004
- Decision dateNov 2, 2004
Cite For
- Denial of Clearance Due to Significant Financial Issues Under Guideline F
- Falsification of Security Clearance Application Under Guideline E
- Criminal Conduct Impacting Security Clearance Eligibility Under Guideline J