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Summary

The applicant, a 33-year-old Security Manager for a defense contractor, faced issues under Guideline E (Personal Conduct) and Guideline F (Financial Considerations) due to a history of significant overdue debts and questionable judgment demonstrated by past criminal conduct. The judge found that the applicant failed to show mitigation for his financial issues and did not provide evidence of rehabilitation regarding his personal conduct, leading to the denial of his security clearance.

Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: In August 2002, Applicant was arrested and charged with Driving Under the Influence (DUI). In September 2002, he pled guilty, and he was fined $600, with $300 suspended, sentenced to 30 days, with all but 24 hours suspended, and ordered to attend an Alcohol Safety Action Program. He was also sentenced to 12 months probation, and his driver's license was suspended for 12 months (2.a). In January 2002, Applicant was arrested and charged with Felonious Assault. He spent five days in prison for handling a pocketknife in a bar in a manner that was considered threatening. The case was not prosecuted when a material witness did not appear at trial (2.b). This overdue debt to Creditor 1 is cited in the SOR in the amount of $4,177. Applicant denied that this debt is due and owing in Exhibit 3, his Response to the Statement of Reasons (RSOR). He contends that this debt was to be paid by his ex-wife as a result of a property settlement agreement, but that since she has refused to pay the debt, it has been listed on his Chapter 13 bankruptcy filing. No evidence was ever introduced, either with Applicant's RSOR, or during the period he had to respond to the FORM, up to September 24, 2004, to establish that a bankruptcy was filed on behalf of Applicant. I find that Applicant owes the entire amount stated (1.a). This overdue debt to Creditor 2 is cited in the SOR in the amount of $4,514. Applicant admitted that this debt is due and owing in Exhibit 3, but he claimed that to resolve this debt, it has been listed on his Chapter 13 bankruptcy filing. No evidence was introduced to establish that a bankruptcy was filed on behalf of Applicant. I find that Applicant owes the entire amount stated (1.b). This overdue debt to Creditor 3 is cited in the SOR in the amount of $3,766. Applicant admitted that this debt is due and owing in Exhibit 3, but he claimed this debt was the same as 1.b., above. I find this to be a duplicate debt. Applicant will not be considered to owe this debt as listed here (1.c). This overdue debt to Creditor 4 is cited in the SOR in the amount of $2,096. Applicant admitted that this debt is due and owing in Exhibit 3, but he claimed that to resolve this debt, it has been listed on his Chapter 13 bankruptcy filing. No evidence was introduced to establish that a bankruptcy was filed on behalf of Applicant. I find that Applicant owes the entire amount stated (1.d). This overdue debt, also to Creditor 5, is cited in the SOR in the amount of $421. Applicant admitted that this debt is due and owing in Exhibit 3, but he claimed that to resolve this debt, it has been listed on his Chapter 13 bankruptcy filing. No evidence was introduced to establish that a bankruptcy was filed on behalf of Applicant. I find that Applicant owes the entire amount stated (1.e). This overdue debt to Creditor 6 is cited in the SOR in the amount of $937. Applicant contends that this debt was paid in June 2004 (Exhibit 3). I find that Applicant has resolved this debt (1.f). This overdue debt to Creditor 6 is cited in the SOR in the amount of $150. Applicant admitted that this debt is due and owing in Exhibit 3, but he claimed that to resolve this debt, it has been listed on his Chapter 13 bankruptcy filing. No evidence was introduced to establish that a bankruptcy was filed on behalf of Applicant. I find that Applicant owes the entire amount stated (1.g). This overdue debt to Creditor 7 is cited in the SOR in the amount of $3,467. Applicant contends that this debt was paid in June 2001 (Exhibit 3). I find that Applicant has resolved this debt (1.h). This overdue debt to Creditor 8 is cited in the SOR in the amount of $654. Applicant denied that this debt is due and owing in Exhibit 3. He contends that this debt was also to be paid by his ex-wife as a result of a property settlement agreement, but that since she has refused to pay the debt, it has been listed on his Chapter 13 bankruptcy filing. No evidence was ever introduced to establish that a bankruptcy was filed on behalf of Applicant. I find that Applicant owes the entire amount stated (1.i). This overdue debt to Creditor 9 is cited in the SOR in the amount of $578. Applicant admitted that this debt is his in Exhibit 3, and contends that he has reduced it from $2,763 to $578. He contends that this debt was also listed on his Chapter 13 bankruptcy filing. No evidence was ever introduced to establish that a bankruptcy was filed on behalf of Applicant. I find that Applicant owes $578 on this debt (1.j). This overdue debt to Creditor 8 is cited in the SOR in the amount of $2,426. Applicant denied that this debt is due and owing in Exhibit 3. He contends that this debt was also to be paid by his ex-wife as a result of a property settlement agreement, but that since she has refused to pay the debt, it has been listed on his Chapter 13 bankruptcy filing. No evidence was ever introduced to establish that a bankruptcy was filed on behalf of Applicant. I find that Applicant owes the entire amount stated (1.k). This overdue debt to Creditor 9 is cited in the SOR in the amount of $4,213. Applicant admitted that this debt is due and owing in Exhibit 3, but he claimed this debt was the same as 1.a., above. I find this to be a duplicate debt. Applicant will not be considered to owe this debt as listed here (1.l). This overdue debt to Creditor 10 is cited in the SOR in the amount of $118. Applicant admitted that this debt is due and owing in Exhibit 3, but he claimed that to resolve this debt, it has been listed on his Chapter 13 bankruptcy filing. No evidence was introduced to establish that a bankruptcy was filed on behalf of Applicant. I find that Applicant owes the entire amount stated (1.m). This overdue debt to Creditor 11 is cited in the SOR in the amount of $7,742. Applicant denied that this debt is due and owing in Exhibit 3, contending that this medical bill was paid by an insurance company, during the period around March 2003. However, in his Response to Interrogatories, dated January 14, 2004, Applicant listed this debt as unpaid (Exhibit 6). He claims that he listed this debt on his Chapter 13 bankruptcy filing, because he has not been able to confirm from the creditor that it has been paid. No evidence was ever introduced to establish that the debt, listed as unpaid in Exhibit 6, has now been paid or that a bankruptcy was filed on behalf of Applicant. I find that Applicant owes the entire amount stated (1.n). This overdue debt to Creditor 12 is cited in the SOR in the amount of $8,344. Applicant denied that this debt is due and owing in Exhibit 3, contending that this medical bill was paid by an insurance company, during the period around March 2003. However, in his Response to Interrogatories, Applicant listed this debt as unpaid (Exhibit 6). He claims that he listed this debt on his Chapter 13 bankruptcy filing, because he has not been able to confirm from the creditor that it has been paid. No evidence was ever introduced to establish that the debt, listed as unpaid in Exhibit 6, has now been paid or that a bankruptcy was filed on behalf of Applicant. I find that Applicant owes the entire amount stated (1.o). This overdue debt to Creditor 13 is cited in the SOR in the amount of $6,825. Applicant denied that this debt is due and owing in Exhibit 3, contending that this medical bill was paid by an insurance company, during the period around March 2003. However, in his Response to Interrogatories, Applicant listed this debt as unpaid (Exhibit 6). He claims that he listed this debt on his Chapter 13 bankruptcy filing, because he has not been able to confirm from the creditor that it has been paid. No evidence was ever introduced to establish that the debt, listed as unpaid in Exhibit 6, has now been paid or that a bankruptcy was filed on behalf of Applicant. I find that Applicant owes the entire amount stated (1.p). This overdue debt to Creditor 14 is cited in the SOR in the amount of $6,825. Applicant denied that this debt is due and owing in Exhibit 3, contending that this medical bill was paid by an insurance company, during the period around March 2003. However, in his Response to Interrogatories, Applicant listed this debt as unpaid (Exhibit 6). He claims that he listed this debt on his Chapter 13 bankruptcy filing, because he has not been able to confirm from the creditor that it has been paid. No evidence was ever introduced to establish that the debt, listed as unpaid in Exhibit 6, has now been paid or that a bankruptcy was filed on behalf of Applicant. I find that Applicant owes the entire amount stated (1.q). This overdue debt to Creditor 15 is cited in the SOR in the amount of $437. Applicant denied that this debt is due and owing in Exhibit 3, contending that this medical bill was paid by an insurance company, during the period around March 2003. However, in his Response to Interrogatories, Applicant listed this debt as unpaid (Exhibit 6). He claims that he listed this debt on his Chapter 13 bankruptcy filing, because he has not been able to confirm from the creditor that it has been paid. No evidence was ever introduced to establish that the debt, listed as unpaid in Exhibit 6, has now been paid or that a bankruptcy was filed on behalf of Applicant. I find that Applicant owes the entire amount stated (1.r). This overdue debt to Creditor 16 is cited in the SOR in the amount of $170. Applicant denied that this debt is due and owing in Exhibit 3, contending that this medical bill was paid by an insurance company, during the period around March 2003. However, in his Response to Interrogatories, Applicant listed this debt as unpaid (Exhibit 6). He claims that he listed this debt on his Chapter 13 bankruptcy filing, because he has not been able to confirm from the creditor that it has been paid. No evidence was ever introduced to establish that the debt, listed as unpaid in Exhibit 6, has now been paid or that a bankruptcy was filed on behalf of Applicant. I find that Applicant owes the entire amount stated (1.s). This overdue debt to Creditor 17 is cited in the SOR in the amount of $455. Applicant denied that this debt is due and owing in Exhibit 3, contending that this medical bill was paid by an insurance company, during the period around March 2003. However, in his Response to Interrogatories, Applicant listed this debt as unpaid (Exhibit 6). He claims that he listed this debt on his Chapter 13 bankruptcy filing, because he has not been able to confirm from the creditor that it has been paid. No evidence was ever introduced to establish that the debt, listed as unpaid in Exhibit 6, has now been paid or that a bankruptcy was filed on behalf of Applicant. I find that Applicant owes the entire amount stated (1.t).

The judge denied the clearance. The government raised disqualifying conditions E2.A6.1.2.1, E2.A6.1.2.3, E2.A5.1.2, E2.A5.1.3. The judge applied mitigating conditions E2.A6.1.3.3, E2.A5.1.3. The decision turned on the following: The applicant has a history of significant overdue debts that have not been resolved; The applicant exhibited questionable judgment and untrustworthiness through past criminal conduct, including a DUI and a felony charge; The applicant failed to demonstrate a good faith effort to resolve his financial obligations or to show evidence of rehabilitation.

Why the Applicant Was Denied

• The applicant has a history of significant overdue debts that have not been resolved.
• The applicant exhibited questionable judgment and untrustworthiness through past criminal conduct, including a DUI and a felony charge.
• The applicant failed to demonstrate a good faith effort to resolve his financial obligations or to show evidence of rehabilitation.

Conditions Referenced

Key Rule Quoted

“"Each adjudication is to be an overall common sense determination based upon consideration and assessment of all available information, both favorable and unfavorable."”

Procedural Posture

• SOR issuedJan 8, 2004
• Answer filedJul 7, 2004Applicant requested a decision based on the written record.
• Hearing held—No hearing was held; decision made on the written record.
• Decision dateMar 8, 2005

Cite For

• Denial Based on Unresolved Financial Obligations Under Guideline F
• Impact of Past Criminal Conduct on Security Clearance Eligibility Under Guideline E
• Lack of Evidence for Mitigation in Financial and Personal Conduct Issues