Summary
A 39-year-old defense contractor employee was denied a security clearance for an Information Systems Position designated ADP-II, primarily due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The applicant's financial history included a 1998 bankruptcy discharge, after which his finances deteriorated, resulting in numerous delinquent accounts.
Specific allegations included multiple accounts placed for collection, such as video rental, oral surgeon, family medical practice, medical center emergency room, waste disposal, a buffet bounced check, and two federal student loans. Additionally, a bank credit card was charged off, as was a deficiency on an automobile loan for a repossessed vehicle. A key concern under personal conduct was that in 2003, the applicant falsely denied having any accounts 180 days delinquent on his security clearance application.
The denial was based on the applicant's significant financial delinquencies, which remained largely unaddressed until the trustworthiness review commenced, and his dishonesty in reporting his financial status. Disqualifying conditions F3 and E2 were raised, while mitigating conditions F2 and E2 were applied.
Why the Applicant Was Denied
- The applicant's financial situation was characterized by significant delinquencies and a lack of action to address them until the trustworthiness review began.
- The applicant lied on his security clearance application regarding the status of his delinquent accounts, raising concerns about his honesty and reliability.
Conditions Referenced
- F3raisedFinancial ConsiderationsThe applicant was financially overextended and had numerous delinquent accounts.
- E2raisedPersonal ConductThe applicant's dishonesty in reporting his financial status indicated untrustworthiness.
- F2rejectedFinancial ConsiderationsThe applicant's previous bankruptcy discharge did not mitigate the current financial delinquencies.
- E2rejectedPersonal ConductThe applicant's actions did not demonstrate a willingness to comply with rules and regulations.
Key Rule Quoted
“A person who seeks access to classified or sensitive information enters into a fiduciary relationship with the government predicated upon trust and confidence.”
Procedural Posture
- SOR issuedJun 10, 2004
- Answer filedJul 19, 2004
- Hearing heldNov 17, 2004
- Decision dateJun 8, 2005
Cite For
- Financial Irresponsibility Leading to Disqualifying Conditions Under Guideline F
- Dishonesty in Security Clearance Applications Under Guideline E
- The Impact of Unresolved Financial Issues on Trustworthiness Determinations