Summary
A 45-year-old defense contractor was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The denial stemmed from the applicant's falsification of material facts on his security clearance application (SF-86) regarding his financial status, coupled with a history of financial delinquencies.
Specifically, the applicant deliberately provided false answers to Questions 38 and 39 on his SF-86. He failed to disclose a $170 debt to a jeweler, which was over 120 days delinquent as of August 2003 and not satisfied until June 28, 2004. Additionally, he did not report three other outstanding debts from 1998, 2000, and 2001 that had been charged off or placed for collection and remained unsatisfied as of November 2004. These undisclosed debts included approximately $9,731 to one creditor, $150 to another, and $1,061 to a towing company.
The applicant also had a Chapter 7 bankruptcy in 1991, which discharged approximately $9,142 in debts. The decision highlighted that the applicant's ongoing financial issues and lack of candor raised significant security concerns, as he did not demonstrate good faith efforts to resolve his financial delinquencies.
Why the Applicant Was Denied
- The applicant falsified information on his SF-86 regarding financial delinquencies.
- He has a long history of financial problems, including a Chapter 7 bankruptcy in 1991.
- The applicant did not demonstrate good faith efforts to resolve his financial delinquencies.
Conditions Referenced
- E2.A5.1.2.2raisedDeliberately Falsifying Information on a Security Clearance Application
- E2.A5.1.2.4raisedConcealing Information That Increases Vulnerability to Coercion
- E2.A6.1.2.1raisedA History of Not Meeting Financial Obligations
- E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts
- E2.A5.1.3.1rejectedThe Falsification Was Not Recent or Isolated
- E2.A5.1.3.2rejectedThe Applicant Made Prompt, Good-faith Efforts to Correct the Falsification
- E2.A5.1.3.3rejectedFinancial Difficulties Were Largely Caused by Conditions Beyond the Applicant's Control
- E2.A5.1.3.5rejectedThe Applicant Has Taken Positive Steps to Significantly Reduce or Eliminate Vulnerability to Coercion
- E2.A6.1.3.1rejectedThe Applicant Has Shown a Good-faith Effort to Repay Debts
- E2.A6.1.3.2rejectedThe Applicant's Financial Problems Are Being Resolved
- E2.A6.1.3.3rejectedThe Applicant Has Sought Counseling for Financial Problems
- E2.A6.1.3.4rejectedThe Applicant Has Initiated a Good-faith Effort to Pay Creditors
- E2.A6.1.3.6rejectedThe Applicant Has Demonstrated a Clear Plan to Resolve Financial Issues
Key Rule Quoted
“An applicant "has the ultimate burden of demonstrating that it is clearly consistent with the national interest to grant or continue his security clearance."”
Procedural Posture
- SOR issuedDec 8, 2004
- Answer filedDec 30, 2004
- Hearing held—Applicant requested decision on the record without a hearing.
- Decision dateJun 29, 2005
Cite For
- Falsification of Information on Security Clearance Applications Under Guideline E
- Financial Delinquencies as a Disqualifying Condition Under Guideline F
- The Burden of Proof on the Applicant to Demonstrate Eligibility for a Security Clearance.