Summary
A 39-year-old security officer employed by a defense contractor was DENIED a security clearance due to concerns under Guidelines E (Personal Conduct), F (Financial Considerations), and J (Criminal Conduct). The applicant had over $60,000 in unresolved debts across ten creditors, including delinquent credit cards and balances from two repossessed automobiles. These debts, some dating back to 1998, remained unpaid despite the applicant having a stable income and a monthly net remainder of $740 after expenses.
The denial was also based on the applicant's failure to disclose these significant financial obligations on his security clearance application. He omitted adverse information in response to three financial questions and minimized the amounts owed on the repossessed vehicles. While he denied intent to falsify, this was deemed insufficient to meet mitigating standards. The government established security concerns over his criminal conduct in failing to provide truthful answers on the security form.
Ultimately, the applicant failed to resolve any of his debts, did not seek financial counseling or file for bankruptcy, and demonstrated a lack of candor by omitting critical financial information. These factors led to the denial of his security clearance.
Why the Applicant Was Denied
- The applicant failed to resolve any of his debts to ten creditors, despite having a stable job and sufficient income.
- He did not seek financial counseling or file for bankruptcy to address his financial issues.
- The applicant omitted significant financial information from his security clearance application, which was deemed a lack of candor.
Conditions Referenced
- E2.A5.1.2.2appliedDeliberate Omission, Concealment, or Falsification of Relevant and Material Facts
- E2.A10.1.2.1appliedAllegations or Admissions of Criminal Conduct
- E2.A6.1.2appliedHistory of Financial Problems
- E2.A6.1.3.6rejectedInitiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant failed to provide evidence of any efforts to resolve his debts.
- E2.A5.1.3.2rejectedFalsification Was an Isolated Incident, Not Recent, and the Individual Has Subsequently Provided Correct Information VoluntarilyThe applicant's omissions were not isolated and were deemed deliberate.
- E2.A10.1.3.1rejectedThe Criminal Behavior Was Not RecentThe applicant's conduct was ongoing and unresolved.
Key Rule Quoted
“The responsibility for producing evidence initially falls on the Government to demonstrate that it is not clearly consistent with the national interest to grant or continue Applicant's access to classified information.”
Procedural Posture
- SOR issuedApr 27, 2005
- Answer filedMay 10, 2005Notarized response with letters of reference.
- Hearing held—Applicant requested a decision be made with a hearing.
- Decision dateJan 31, 2006
Cite For
- Failure to Disclose Financial Issues on Security Clearance Application Under Guideline E
- Unresolved Financial Debts as a Basis for Denial Under Guideline F
- Criminal Conduct Related to Omissions on Security Forms Under Guideline J