Summary
The applicant, a 41-year-old supply chain associate for a defense contractor, faced security clearance denial due to significant financial difficulties and deliberate omissions in her security clearance application. Despite some progress in addressing her debts, over $38,000 remained delinquent without arrangements for resolution, leading to concerns about her financial responsibility and personal conduct.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant deliberately omitted relevant and material information about her financial condition from her security clearance application (2.a). Applicant deliberately omitted relevant and material information about her financial condition from her security clearance application (2.b). $212 Unpaid (1.a). $259 Unpaid (1.b). $733 Agreed to pay $20 @ month for 2 yrs. Has made 3 payments (1.c). $1,433 Unpaid, but has until 10 Nov 2005 to decide whether to accept a settlement offer (1.d). $7,578 Makes payments of $25 @ month. Has made 4 payments (1.e). $8,820 From voluntary car repossession and sale of auto-unpaid and no arrangements to pay (1.f). $1,012 Unsure if it is her debt, but hasn't contested it (1.g). $67 Unpaid. Claims company won't send her an invoice to pay it (1.h). $195 Paid (1.i). $1,045 Unsure if it is her debt, but hasn't contested it (1.j). $3,768 Unpaid-no arrangements to pay (1.k). $4,277 Unpaid-no arrangements to pay (1.l). $1,222 Unpaid-no arrangements to pay (1.m). $1,040 She thinks it is paid (1.n). $385 Settled for $156 and paid (1.o). $10,238 Unpaid-no arrangements to pay (1.p). $239 Unsure if it is her debt, but hasn't contested or paid it (1.q). $3,845 Student loan-deferred until December 2005 (1.r). $1,030 Student loan-deferred until December 2005 (1.s). $1,144 Creditor offered to settle. She will pay $597 by end of Nov 2005 (1.t). $210 Makes monthly payments (3 so far) of $35 (1.u). $4,051 Unpaid-no arrangements to pay (1.v). $3,507 Unpaid-no arrangements to pay (1.w). $821 Paid, but no proof (1.x). $344 Paid (1.y).
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: Applicant has over $38,000 in delinquent debts with no arrangements to resolve them; Applicant deliberately omitted relevant financial information from her security clearance application.
Why the Applicant Was Denied
- Applicant has over $38,000 in delinquent debts with no arrangements to resolve them.
- Applicant deliberately omitted relevant financial information from her security clearance application.
Conditions Referenced
- E2.A6.1.2.1raisedFinancial Considerations - History of Not Meeting Financial Obligations
- E2.A6.1.2.3raisedFinancial Considerations - Unable or Unwilling to Satisfy Debts
- E2.A5.1.2.2raisedPersonal Conduct - Deliberately Omitted Relevant and Material Facts
- E2.A6.1.3.3rejectedFinancial Considerations - Conditions Beyond the Applicant's ControlWhile some financial issues were due to her husband's unemployment and injuries, the judge found that the applicant's financial problems were largely due to misuse of credit cards.
- E2.A6.1.3.6appliedFinancial Considerations - Good Faith Effort to Pay DebtsApplicant made some payments on smaller debts but failed to address larger delinquent debts.
Key Rule Quoted
“An individual who is financially overextended is at risk of having to engage in illegal acts to generate funds.”
Procedural Posture
- SOR issuedJan 31, 2005
- Answer filedMar 21, 2005
- Hearing heldNov 1, 2005Postponed due to Hurricane Rita.
- Decision dateJan 17, 2006
Cite For
- Deliberate Omission of Financial Information Under Guideline E
- Financial Irresponsibility Leading to Security Clearance Denial Under Guideline F
- Impact of Financial Difficulties on Security Clearance Eligibility.