Summary
The applicant, a 30-year-old carpenter, faced security clearance denial under Guidelines E (Personal Conduct), F (Financial Considerations), and J (Criminal Conduct) due to significant delinquent debt totaling $21,635 and deliberate omissions of debts on his security clearance application. Despite acknowledging his financial issues and attempts to settle some debts, the judge found that the applicant's financial situation posed a continuing security risk, leading to the denial of his clearance.
Under Guideline E (Personal Conduct), Guideline F (Financial Considerations), and Guideline J (Criminal Conduct), the Statement of Reasons alleged the following: Applicant deliberately falsified his August 2004 security clearance application (SF 86) by responding "No" to inquiry into any debts over 180 days delinquent within the preceding seven years, and by responding "Yes" to any debt currently over 90 days delinquent but listing only that debt in ¶ 1.o (2.a). Applicant admitted that he intentionally falsified his SF 86 (2.b). $1,320 credit card balance charged off Feb 02 (1.a). $2,141 credit card balance charged off Feb 02 (1.b). $1,330 for collection from creditor in ¶ 1.d (1.c). $1,331 credit account charged off Mar 02 (1.d). $391 telephone debt for collection Jun 02 (1.e). $419 credit card balance for collection Jul 02 (1.f). $610 credit card balance charged off Aug 02 (1.g). $654 judgment Jan 05 (1.h). $480 for collection Oct 02 (1.i). $520 in collection Nov 02 (1.j). $10,116 charged off May 03 (1.k). $577 credit card balance charged off Jul 03 (1.l). $1,185 for collection Nov 03 (1.m). $521 for collection Dec 03 (1.n). $40 past due 90 days (1.o). Applicant committed a felony violation of 18 U.S.C. § 1001 by making inaccurate statements on his security clearance application (3.a).
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, E2.A10.1.2.1, E2.A10.1.2.2. The judge applied mitigating conditions E2.A6.1.3.3, E2.A6.1.3.6, E2.A10.1.3.2, E2.A10.1.3.6. The decision turned on the following: The applicant had a history of excessive indebtedness and recurring financial difficulties; He deliberately falsified his security clearance application by omitting significant debts; The applicant's financial pressures were deemed insufficiently resolved to mitigate security concerns.
Why the Applicant Was Denied
- The applicant had a history of excessive indebtedness and recurring financial difficulties.
- He deliberately falsified his security clearance application by omitting significant debts.
- The applicant's financial pressures were deemed insufficiently resolved to mitigate security concerns.
Conditions Referenced
- E2.A6.1.2.1raisedA History of Not Meeting Financial Obligations
- E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts
- E2.A5.1.2.2raisedDeliberate Omission, Concealment, or Falsification of Relevant and Material Fact
- E2.A10.1.2.1raisedAllegations or Admission of Criminal Conduct
- E2.A10.1.2.2raisedA Single Serious Crime or Multiple Lesser Offenses
- E2.A6.1.3.3appliedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's Control
- E2.A6.1.3.6appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- E2.A10.1.3.2appliedThe Crime Was an Isolated Incident
- E2.A10.1.3.6appliedThere Is Clear Evidence of Successful Rehabilitation
Key Rule Quoted
“"[N]o one has a 'right' to a security clearance."”
Procedural Posture
- SOR issuedOct 29, 2005
- Answer filedNov 17, 2005
- Hearing heldFeb 7, 2006
- Decision dateJun 6, 2006
Cite For
- Deliberate Omission of Debts on Security Clearance Applications Under Guideline E
- Financial Overextension and Its Implications Under Guideline F
- Criminal Conduct Related to False Statements Under Guideline J