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Summary

The applicant, a 35-year-old computer specialist, faced issues under Guidelines E, F, and J due to a history of 11 delinquent debts totaling nearly $35,000 and falsification of financial information on his security clearance application. The applicant's inconsistent efforts to resolve his debts and failure to disclose significant financial obligations led to the denial of his security clearance.

Under Guideline E (Personal Conduct), Guideline F (Financial Considerations), and Guideline J (Criminal Conduct), the Statement of Reasons alleged the following: Applicant falsified material facts on a Security Clearance Application (SF 86), dated June 10, 2002, when he responded to Question 36 Your Financial Record - Tax Lien, by saying "No" and failing to disclose that he had two Federal tax liens file against him, as alleged in SOR 1.a. and1.b., above (2.a). Applicant falsified material facts on the same SF 86, when he responded to Question 38 Your Financial Delinquencies - 180 Days by saying "No" and deliberately failing to disclose that he was more than 180 days delinquent on those debts alleged in SOR 1.c., 1.e., 1.f., 1.g., 1.h., 1.i., 1.j., and 1.k., above (2.b). Applicant was indebted to the Internal Revenue Service (IRS) on a federal tax lien filed against him in April 2002, in the approximate amount of $2,879.51. This was for Tax Year 2000 (1.a). Applicant was indebted to the Internal Revenue Service (IRS) on a federal tax lien filed against him in April 2002, in the approximate amount of $7,263.00 (1.b). Applicant was indebted to Utility C for approximately $94.00 on an account placed for collection in March 1998 (1.c). Applicant was indebted to Collection Agency D on an account that was placed for collection in about February 2002, in the amount of $200.00 (1.d). Applicant was indebted to Bank E on an account that was charged off in March 2000 in the approximate amount of $853.00 (1.e). Applicant was indebted to Bank F on an account that was charged off in about March 1997, in the approximate amount of $791.00 (1.f). Applicant was indebted to Company G on an account that was placed for collection in about May 1998, in the approximate amount of $1,342.00 (1.g). Applicant was indebted to Student Loan Firm H on delinquent student loans that were placed for collection in about December 1999, in the approximate amount of $13,194.00 (1.h). Applicant was indebted to Credit Union I on an account that was charged off in about June 1996 in the approximate amount of $3,226.00 (1.i). Applicant was indebted to Credit Union J on a civil judgment awarded against him in October 1997 in the approximate amount of $5,000.00 (1.j). Applicant was indebted to Auto Credit Company K on an account that was charged off in about April 1997, in the approximate amount of $14,316.00 (1.k).

The judge denied the clearance. The government raised disqualifying conditions F.1, F.2. The decision turned on the following: The applicant has a history of 11 delinquent debts totaling close to $35,000, with no substantial resolution efforts; The applicant omitted significant financial obligations, including two tax liens and multiple debts over 180 days delinquent, from his security clearance application; The applicant's claims of misunderstanding and ignorance regarding his financial situation were deemed not credible.

Why the applicant was denied

• The applicant has a history of 11 delinquent debts totaling close to $35,000, with no substantial resolution efforts.
• The applicant omitted significant financial obligations, including two tax liens and multiple debts over 180 days delinquent, from his security clearance application.
• The applicant's claims of misunderstanding and ignorance regarding his financial situation were deemed not credible.

Conditions referenced

Key rule quoted

“any doubt as to whether access to classified information is clearly consistent with the interests of national security will be resolved in favor of the nation's security.”

Procedural posture

• SOR issuedMar 22, 2004
• Answer filedMay 3, 2004
• Hearing heldJul 21, 2004
• Decision dateDec 7, 2004

Cite for

• Denial Based on Financial Considerations Under Guideline F
• Failure to Disclose Financial Obligations Under Guideline E
• Credibility Issues Regarding Applicant's Explanations for Financial Conduct