Summary
This 51-year-old engineer faced issues under Guideline E (Personal Conduct) and Guideline F (Financial Considerations) due to a history of financial irresponsibility and deliberate omissions of delinquent debts on his security clearance application. The judge found that the applicant's lack of understanding regarding the impact of his financial history and his intentional falsifications warranted a denial of his security clearance.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant falsified material facts on his Security Clearance Application (SF 86) of January 30, 2001, when he replied to Question "28 a. In the past seven years, have you been over 180 days delinquent on any debt(s)" by stating "No." He intentionally omitted his delinquent and bad debts because he "did not want [his] employer to find out this information." He "admit[s] making this statement" (2.a). Applicant also falsified material facts on his Security Clearance Application (SF 86) of January 30, 2001, when he replied to Question "28 b. Are you currently over 90 days delinquent on any debt(s)," by stating "No." He intentionally omitted his delinquent and bad debts because he "did not want [his] employer to find out this information." He "admit[s] making this statement" (2.b). Internal Revenue Service (IRS) - a tax lien for Tax Year (TY) 2002 for $7,515.00 (1.a). Credit Service B for $501.00 (1.b). Dental Collection Agency C for $618.00 (1.c). Collection Agency D for $95.00 (1.d). Collection Agency E for $233.00 (1.e). Collection Agency F for $1,889.00 (1.f). IRS for $42,352.00 for Tax Years 1998, 1999, and 2000 (1.g). County Treasurers Office H for $2,854.00 (delinquent property taxes for TY 2002) (1.h). Applicant filed a Chapter 7 Bankruptcy petition in October 1994, citing assets of $236,00.00 and debts of $202,784.00 (1.i). Applicant was financially overextended according to his Personal Financial Statement (PFS) of April 14, 2003, which showed a negative monthly remainder (1.j).
The judge denied the clearance. The government raised disqualifying conditions DC 1, DC 3, DC 2. The judge applied mitigating conditions MC 6. The decision turned on the following: The applicant has a history of significant financial irresponsibility; He intentionally omitted delinquent debts on his security clearance application, demonstrating a lack of trustworthiness; No mitigating evidence was presented to counter the government's concerns.
Why the Applicant Was Denied
- The applicant has a history of significant financial irresponsibility.
- He intentionally omitted delinquent debts on his security clearance application, demonstrating a lack of trustworthiness.
- No mitigating evidence was presented to counter the government's concerns.
Conditions Referenced
- DC 1appliedA History of Not Meeting Financial Obligations
- DC 3appliedInability or Unwillingness to Satisfy Debts
- DC 2appliedDeliberate Omission, Concealment or Falsification of Material Facts
- MC 6appliedThe Individual Has Shown Some Evidence of Financial RehabilitationThe applicant paid off some significant debts as part of refinancing his home.
Key Rule Quoted
“If Applicant cannot be trusted to tell the truth in his security clearance application, there is no basis for concluding that he can be trusted to protect classified information.”
Procedural Posture
- SOR issuedJan 14, 2005
- Answer filedFeb 12, 2005
- Hearing heldMay 3, 2005
- Decision dateJun 20, 2005
Cite For
- Deliberate Falsification of Material Facts on Security Clearance Applications Under Guideline E
- Financial Irresponsibility as a Basis for Denial Under Guideline F
- The Impact of Financial Behavior on Security Clearance Eligibility