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Summary

The applicant, a 47-year-old defense contractor, faced security clearance denial due to significant financial issues, including over $30,000 in delinquent debts and misuse of a company credit card for personal expenses. Despite some efforts to address his tax liabilities, the applicant failed to demonstrate sufficient mitigation of security concerns related to financial irresponsibility and personal conduct.

Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant has a history of not meeting his financial obligations, including using his company credit card for personal expenses, which resulted in formal counseling and wage garnishment (2.a). Telephone debt ($253.00) This debt was turned over for collection. Applicant states that this bill was paid in full (1.a). Collection debt ($450.00) This debt was turned over for collection. Applicant planned on paying this bill in May 2006 via Western Union (1.b). Bank debt ($1,631.00) Applicant indicates that this is the same account as ¶ 1.g infra. This debt was turned over for collection (1.c). Bank debt ($6,820.00) Applicant indicates this is the same account as ¶ 1.j infra. This debt was turned over for collection (1.d). Charged-off debt ($3,777.00) This debt was charged off. Applicant started making payments on the account, but acknowledges that the account is in arrears (1.e). Telephone debt ($23.00) This debt was turned over for collection. Applicant states this account was paid in full (1.f). Bank debt ($1,168.00) Applicant indicates that this is the same account as ¶ 1.c supra. This debt was charged off (1.g). Bank debt ($3,777.00) This debt has been transferred or sold to another creditor for collection (1.h). Utility debt ($82.00) This debt was turned over for collection. Applicant denies that he owes on this account because the account was paid upon termination of electric service (1.i). Bank debt ($6,795.00) Applicant indicates that this is the same bill as ¶ 1.d supra. This debt is charged off (1.j). Store credit debt ($121.00) This debt was charged off. He denies this account is his (1.k). IRS ($10,601.17) This debt is owed for income tax for tax years 2000 to 2003. Applicant is making payments of $500.00 on the 28th of April and May 2006 (1.l). Credit card debt ($1,780.67) On July 23, 2002, Applicant authorized deductions from his paycheck to pay off this employee credit card debt (1.n).

The judge denied the clearance. The government raised disqualifying conditions E2.A6.1.2.1, E2.A6.1.2.2, E2.A6.1.2.3, E2.A5.1.1, E2.A5.1.5. The decision turned on the following: Applicant has a history of financial difficulties totaling over $30,000 in delinquent debts; Applicant misused a company credit card for personal expenses, leading to formal counseling and wage garnishment; Applicant did not provide evidence of payment for several disputed debts, undermining his claims of financial responsibility.

Why the Applicant Was Denied

• Applicant has a history of financial difficulties totaling over $30,000 in delinquent debts.
• Applicant misused a company credit card for personal expenses, leading to formal counseling and wage garnishment.
• Applicant did not provide evidence of payment for several disputed debts, undermining his claims of financial responsibility.

Conditions Referenced

Key Rule Quoted

“No one has a right to a security clearance and "the clearly consistent standard indicates that security clearance determinations should err, if they must, on the side of denials."”

Procedural Posture

• SOR issuedApr 7, 2006
• Answer filedApr 28, 2006Applicant elected to have the case decided on the written record.
• Hearing held—No hearing was held.
• Decision dateOct 20, 2006

Cite For

• Denial of Clearance Due to Significant Financial Issues Under Guideline F
• Misuse of Company Credit Card as a Factor in Personal Conduct Under Guideline E
• Failure to Mitigate Financial Irresponsibility Despite Some Payment Efforts.