Summary
A 40-year-old data entry clerk was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The applicant had a history of financial difficulties, including a Chapter 13 bankruptcy filed in 1992 and discharged in July 1997. At the time of her security clearance application, signed on July 3, 2000, she had ten delinquent debts.
Among these debts were a credit card debt delinquent by over 90 days, a $186 telephone bill, and $464 owed to another telephone company. She also had medical bills that were a mutual obligation with her insurance carrier, a $250 bill with her local village government on which she was paying $25 monthly, and a delinquent credit card debt from an account opened in November 1999. A debt related to her automobile was also noted. The applicant had considered filing for bankruptcy again in July 2003 but did not proceed.
Crucially, two of the ten delinquent debts, each over 90 days past due, were not disclosed on her security clearance application. The judge found that the applicant's belief that debts were nullified due to a lack of communication from creditors was unreasonable. This, combined with a pattern of deception regarding her financial obligations and a failure to provide truthful responses to government inquiries, led to the denial of her security clearance, as the financial and personal conduct issues were not mitigated.
Why the Applicant Was Denied
- The applicant had ten delinquent debts, including two that were not disclosed on her security clearance application.
- The applicant's belief that debts were nullified due to lack of communication from creditors was deemed unreasonable.
- The applicant engaged in a pattern of deception regarding her financial obligations and failed to provide truthful responses to government inquiries.
Conditions Referenced
- E2.A6.1.2.1raisedDC 1A history of not meeting financial obligations.
- E2.A6.1.2.3raisedDC 2Inability or unwillingness to satisfy debts.
- E2.A5.1.2.2raisedDC 2The deliberate omission, concealment, or falsification of relevant and material facts.
- E2.A5.1.2.5raisedDC 5A pattern of dishonesty or rule violations.
Key Rule Quoted
“"No one has a 'right' to a security clearance."”
Procedural Posture
- SOR issuedOct 24, 2003
- Answer filedDec 19, 2003Applicant admitted all allegations except one.
- Hearing heldApr 19, 2004Hearing convened after rescheduling.
- Decision dateSep 30, 2004
Cite For
- Denial Based on Undisclosed Debts on Security Clearance Application
- Pattern of Deception Regarding Financial Obligations
- Unreasonable Beliefs About Debt Status Leading to Security Concerns