Summary
A 34-year-old defense contractor was denied a security clearance due to concerns under Guidelines E (Personal Conduct), F (Financial Considerations), and J (Criminal Conduct). The denial stemmed from approximately $50,000 in delinquent debt and a prior larceny incident that was not disclosed on his security clearance application.
Specific financial issues included an $89 debt from November 2000, unpaid telephone costs of $584, and a $2,041 debt placed for collection in June 2005. Other significant debts included $41,503 owed to the federal government, a $4,001 car loan placed for collection in May 2005, and a charged-off automobile loan with a $4,523 past due balance. Additionally, student loan debts from 1993 and 1995, totaling $1,279 and $1,749 respectively, were past due as of August 2005.
The larceny incident involved the applicant's apprehension by military police in July 2001 for attempting to purchase a compact disk player for less than its value by misrepresenting it in a less expensive box. Although not prosecuted, this incident, along with the undisclosed financial delinquencies, contributed to the judge's finding of insufficient evidence of financial stability and a lack of candor regarding past conduct.
Why the Applicant Was Denied
- The applicant has approximately $50,000 in delinquent debt, indicating financial irresponsibility.
- The applicant failed to disclose a prior larceny incident on his security clearance application, raising concerns about honesty and reliability.
- The applicant's explanations for his financial issues and failure to disclose were deemed insufficient to mitigate security concerns.
Conditions Referenced
- E2.A6.1.1raisedFinancial Considerations
- E2.A10.1.1raisedCriminal Conduct
- E2.A5.1.1raisedPersonal Conduct
- E2.A6.1.3.3rejectedFinancial ConsiderationsThe applicant's marital separation was not sufficiently documented to demonstrate that financial issues were beyond his control.
- E2.A6.1.3.6rejectedFinancial ConsiderationsThe applicant's efforts to resolve debts were insufficient to mitigate the overall financial irresponsibility.
- E2.A10.1.3.2rejectedCriminal ConductThe isolated nature of the larceny incident did not demonstrate sufficient reform or acceptance of responsibility.
- E2.A5.1.1rejectedPersonal ConductThe applicant's failure to disclose the larceny incident and financial delinquencies indicated a lack of candor.
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 issuedJan 9, 2006
- Answer filedFeb 22, 2006Applicant elected for a determination on the written record.
- Hearing held—No hearing; determination made on the written record.
- Decision dateMar 26, 2007
Cite For
- Denial of Security Clearance Due to Significant Financial Delinquencies Under Guideline F
- Failure to Disclose Criminal Conduct Under Guideline J
- Lack of Candor in Security Clearance Application Under Guideline E