Summary
The applicant, a 37-year-old married father of two, faced security clearance denial under Guideline E (Personal Conduct) and Guideline F (Financial Considerations) due to significant delinquent debts totaling approximately $11,000 and a lack of candor regarding his financial obligations on his security clearance application. Despite efforts to resolve some debts after being rehired by a defense contractor, the applicant's deliberate omission of material financial information raised serious concerns about his trustworthiness and reliability.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: The applicant deliberately omitted relevant and material financial delinquencies from his November 2002 SF 86 (2.a). The applicant falsified his November 2002 security clearance application (SF 86) by denying any debt currently delinquent over 90 days or, within the last seven years delinquent over 180 days, as well as any unpaid judgment debts within the last seven years (2.b). A credit card account opened in March 1997 was cancelled by the credit grantor in June 1997 when it reached $379 past due (1.a). A revolving charge on which he was listed as a co-maker was charged off that June with a balance owed of $2,939 (1.b). In October 1997, a lender sold Applicant's revolving charge account with a delinquent balance of $1,706, to another lender (1.c). Applicant's lawnmower tractor, which he purchased on credit for $2,875 in March 1997, was repossessed and the loan balance of $2,375 was placed for collection in February 1998 (1.d). Applicant's revolving charge with a department store became $1,325 past due and was charged off in February 2000 (1.e). Utility services debts of $67 were placed for collection (1.f). In December 2000, a collection agency obtained a judgment of $1,766 (1.g). A $199 debt, the balance owed for a computer, was sent for collection in June 2001 (1.h). Utility services debts of $104 were placed for collection (1.i). Utility services debts of $129 were placed for collection (1.j). Utility services debts of $67 were placed for collection (1.k).
The judge denied the clearance. The government raised disqualifying conditions E2.A6.1.2.1, E2.A6.1.2.3, E2.A5.1.2.2. The judge applied mitigating conditions E2.A6.1.3.3, E2.A6.1.3.6. The decision turned on the following: The applicant had a history of excessive indebtedness and recurring financial difficulties; The applicant was not candid on his security clearance application regarding his delinquent debts, which raised personal conduct concerns; The applicant's deliberate omission of relevant financial delinquencies from his SF 86 indicated a lack of trustworthiness.
Why the Applicant Was Denied
- The applicant had a history of excessive indebtedness and recurring financial difficulties.
- The applicant was not candid on his security clearance application regarding his delinquent debts, which raised personal conduct concerns.
- The applicant's deliberate omission of relevant financial delinquencies from his SF 86 indicated a lack of trustworthiness.
Conditions Referenced
- E2.A6.1.2.1raisedHistory of Not Meeting Financial Obligations
- E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts
- E2.A5.1.2.2raisedDeliberate Omission, Concealment, or Falsification of Relevant and Material Facts
- E2.A6.1.3.3appliedConditions That Resulted in the Behavior Were Largely Beyond the Person's Control
- E2.A6.1.3.6appliedGood-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“"[N]o one has a 'right' to a security clearance."”
Procedural Posture
- SOR issuedJan 7, 2005
- Answer filedJan 20, 2005
- Hearing heldAug 8, 2005
- Decision dateJan 20, 2006
Cite For
- Lack of Candor on Security Clearance Applications Under Guideline E
- Financial Irresponsibility as a Disqualifying Factor Under Guideline F
- Mitigating Conditions Related to Financial Difficulties and Efforts to Resolve Debts