Summary
A 30-year-old married defense contractor with three children was denied a security clearance due to significant financial difficulties, personal conduct issues, and criminal conduct. The applicant had a history of financial irresponsibility, including a Chapter 7 bankruptcy and numerous delinquent debts. These debts included amounts owed to cell phone providers, loan companies, credit card companies, and for child support, military overpayment, auto loans, medical bills, and tuition. Several debts resulted in judgments, such as $9,829 for a loan to repay school debts and $4,432 for an unpaid car loan.
A key factor in the denial was the applicant's deliberate failure to disclose these financial difficulties on his 2002 security clearance application. He admitted to falsifying answers to specific questions on the application to protect his job. This conduct raised concerns under Guideline E (Personal Conduct), Guideline F (Financial Considerations), and Guideline J (Criminal Conduct).
The judge found that the applicant failed to mitigate the concerns related to his financial situation, his deliberate omissions on the application, and the false statements made to a government agency. Consequently, the security clearance was denied.
Why the Applicant Was Denied
- The applicant deliberately failed to disclose significant financial difficulties on his security clearance application.
- He has a history of financial irresponsibility, including a Chapter 7 bankruptcy and ongoing delinquent debts.
- The applicant's criminal conduct included making false statements regarding his financial status to a government agency.
Conditions Referenced
- E2.A6.1.2.1appliedDC 1: A History of Not Meeting Financial Obligations
- E2.A6.1.2.3appliedDC 3: Inability or Unwillingness to Satisfy Debts
- E2.A5.1.2.2appliedDC 2: the Deliberate Omission, Concealment, or Falsification of Relevant and Material Facts
- E2.A10.1.2.1appliedDC 1: Allegations or Admissions of Criminal Conduct
- E2.A10.1.2.2appliedDC 2: A Single Serious Crime or Multiple Lesser Offenses
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 issuedAug 23, 2005
- Answer filedSep 30, 2005
- Hearing heldJan 26, 2006
- Decision dateJun 30, 2006
Cite For
- Deliberate Omission of Financial Issues on Security Clearance Applications Under Guideline E
- Financial Irresponsibility as a Disqualifying Factor Under Guideline F
- Criminal Conduct Related to False Statements on Security Clearance Applications Under Guideline J