Summary
The applicant, a 44-year-old male with a history of financial difficulties and personal conduct issues, faced security clearance denial under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). His delinquent debts exceeded $20,000, including significant amounts due to improper use of a travel expense account and IRS tax deficiencies. The applicant failed to disclose these debts on his Security Clearance Application and did not demonstrate sufficient efforts to mitigate the security concerns raised by his financial history and personal conduct.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant did not disclose his debts on his Security Clearance Application (SF 86) he signed on June 19, 2004 (2.a). Debt to previous employer - $4,200.00 (1.a). Debt to child care provider - $468.00 (1.b). Credit card debt - $5,174.00 (1.c). Child support delinquencies - $9,116.00 (1.d). Credit card debt - $756.00 (1.e). Credit debt - $112.00 (1.f). Credit debt - $161.00 (1.g). Video store account - $107.00 (1.h). Pager account - $491.00 (1.i).
The judge denied the clearance. The government raised disqualifying conditions E2.A6.1.2.1, E2.A6.1.2.2, E2.A6.1.2.3, E2.A5.1.2.2. The decision turned on the following: Applicant's delinquent debts exceeded $20,000, indicating a history of not meeting financial obligations; Applicant failed to disclose significant debts on his Security Clearance Application (SF 86); The applicant did not demonstrate a genuine good-faith effort to repay his creditors or resolve his financial issues.
Why the Applicant Was Denied
- Applicant's delinquent debts exceeded $20,000, indicating a history of not meeting financial obligations.
- Applicant failed to disclose significant debts on his Security Clearance Application (SF 86).
- The applicant did not demonstrate a genuine good-faith effort to repay his creditors or resolve his financial issues.
Conditions Referenced
- E2.A6.1.2.1raisedA History of Not Meeting Financial Obligations
- E2.A6.1.2.2raisedDeceptive or Illegal Financial Practices Such as Embezzlement, Employee Theft, Check Fraud, Income Tax Evasion, Expense Account Fraud, Filing Deceptive Loan Statements, and Other Intentional Breaches of Trust
- E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts
- E2.A5.1.2.2raisedThe Deliberate Omission, Concealment, or Falsification of Relevant and Material Facts
Key Rule Quoted
“Protecting national security is the paramount concern in reaching a decision in any case, and is dependent upon the primary standard that issuance of a clearance must be clearly consistent with the interests of national security.”
Procedural Posture
- SOR issuedDec 9, 2004
- Answer filedJan 3, 2005
- Hearing heldOct 25, 2005
- Decision dateDec 12, 2005
Cite For
- Denial of Clearance Due to Significant Delinquent Debts Under Guideline F
- Failure to Disclose Financial Obligations on SF 86 Under Guideline E
- Impact of Personal Conduct on Security Clearance Eligibility