Summary
A 54-year-old planner employed by a defense contractor was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The denial stemmed from a history of financial instability and the falsification of financial information on his security clearance application.
The applicant owed approximately $21,000 across several delinquent accounts, including a bank credit card debt of about $5,742 charged off in August 2000, a second bank credit card debt of about $2,844 charged off in February 2000, and a department store debt of about $7,435 charged off in March 2001. Other debts included an account reported 120 days past due for about $1,939 and a collection account for about $3,042. None of these debts had been paid as of May 29, 2003.
Crucially, the applicant responded "no" to questions on his SF-86 regarding whether he had been over 180 days delinquent on any debts in the last seven years, and whether he was currently over 90 days delinquent on any debt. The judge found that the applicant admitted to ongoing delinquent debts and falsified material facts on his application. He also failed to demonstrate a good-faith effort to resolve his financial issues or correct his misrepresentations before being confronted with the facts, leading to the denial of his clearance.
Why the Applicant Was Denied
- The applicant admitted to a history of financial instability and ongoing delinquent debts totaling approximately $21,000.
- The applicant falsified material facts regarding his financial delinquencies on his security clearance application, specifically in response to questions about debt delinquency.
- The applicant failed to demonstrate a good-faith effort to resolve his financial issues or to correct his misrepresentations before being confronted with the facts.
Conditions Referenced
- E2.A5.1.2.2appliedDeliberately Falsifying Information on the Security Clearance Application
- E2.A6.1.2.1appliedFinancial Overextension
- E2.A6.1.2.3appliedInability or Unwillingness to Satisfy Debts
- E2.A5.1.2.4appliedIncreased Vulnerability to Coercion, Exploitation, or Duress Due to Financial Issues
Key Rule Quoted
“"[N]o one has a 'right' to a security clearance."”
Procedural Posture
- SOR issuedDec 8, 2003
- Answer filedJan 21, 2004Requested determination on the record without a hearing.
- Hearing held—No hearing; case determined on the record.
- Decision dateMar 30, 2005
Cite For
- Denial Based on Financial Instability and Lack of Candor Under Guideline F
- Falsification of Information on the SF-86 Under Guideline E
- The Importance of Truthful Disclosures in Security Clearance Applications.