Summary
The Applicant, a 53-year-old defense contractor, sought a security clearance but was denied due to significant financial issues and falsification of his security clearance application regarding his financial status and an alcohol-related arrest. The judge found that the Applicant failed to mitigate the security concerns stemming from his financial irresponsibility and dishonesty.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: On March 22, 2004, the Applicant completed an official DoD questionnaire in which he stated that he had never been charged with a criminal offense related to alcohol. This answer was false in that the Applicant had been arrested and charged with Driving Under the Influence of Alcohol and Refusing to Submit to a Chemical Test in August 1999 (2.a). The same questionnaire also asks the Applicant whether, in the last seven years, he has had any property repossessed. The Applicant answered, "No." The Applicant had an automobile repossessed in 2003. The available credit report states that it was an involuntary repossession. The Applicant has consistently maintained that he voluntarily returned the vehicle to the credit union. Based on the available evidence, I find that the Applicant did not falsify this answer since he had a good faith belief that his automobile was not repossessed (2.b). Question 38 of Government Exhibit 1 asks whether, within the last seven years, the Applicant has been more than 180 days delinquent on any debt. Question 39 asks whether, as of the date he completed Government Exhibit 1, the Applicant was 90 days delinquent on any debt. He answered "No" to both of these questions. Those statements were false answers to material questions pertaining to the Applicant's financial situation (2.c). The Applicant is indebted to a bank in the amount of $27,333.14 for a property loan. This debt has been past due and owing since about December 2001 (1.a). The Applicant is indebted to a bank in the amount of $1,787.00 for a credit card debt. This debt has been past due and owing since about June 2003 (1.b). The records show that the Applicant has owed a bank $541.50 since February 2004. The Applicant admits the debt, but was unable to say what the debt was for or whether it was paid. Based on the available evidence, I find that this debt has not been paid (1.c). The Applicant is indebted to a medical provider in the amount of $411.00 This debt has been past due and owing since about November 2003 (1.d). The Applicant was indebted to a medical provider in the amount of $121.00. This debt had been past due and owing since about June 2002. The Applicant testified that he believed this debt had been paid. Based on the available evidence, I find that this debt has not been paid (1.e). The Applicant was indebted to two medical providers in the total amount of $4,013.00. These debts have been past due and owing since about March 2005 (1.f). The Applicant is indebted to a credit card provider in the amount of $2,513.00. This debt has been past due and owing since October 2005 (1.g). The Applicant is indebted to a bank for a credit card in the amount of $1,297.00. This debt has been past due and owing since October 1999 (1.h). The Applicant is indebted to a bank for a credit card in the amount of $1,438.00. This debt has been past due and owing since December 1999 (1.i). The Applicant was indebted to a telephone company in the amount of $243.00. This debt had been past due and owing since November 1999. The Applicant testified that he believed this debt had been paid. Based on the available evidence, I find that this debt has not been paid (1.j). The Applicant is indebted to a credit union in the amount of $8,414.00, the balance owed after his automobile was surrendered to the credit union and sold. This debt has been past due and owing since approximately April 2004 (1.k).
The judge denied the clearance. The government raised disqualifying conditions E2.A5.1.2.2, E2.A6.1.2.1, E2.A6.1.2.3. The decision turned on the following: The Applicant has a history of significant past due debts totaling approximately $48,111.64, which he has been unable or unwilling to resolve; The Applicant intentionally falsified material information on his security clearance application regarding his financial delinquencies and an alcohol-related arrest.
Why the Applicant Was Denied
- The Applicant has a history of significant past due debts totaling approximately $48,111.64, which he has been unable or unwilling to resolve.
- The Applicant intentionally falsified material information on his security clearance application regarding his financial delinquencies and an alcohol-related arrest.
Conditions Referenced
- E2.A5.1.2.2appliedDeliberate Omission, Concealment, or Falsification of Relevant and Material Facts
- E2.A6.1.2.1appliedA History of Not Meeting Financial Obligations
- E2.A6.1.2.3appliedInability or Unwillingness to Satisfy Debts
Key Rule Quoted
“An Applicant who is financially irresponsible may also be irresponsible, unconcerned, negligent or careless in properly handling and safeguarding classified information.”
Procedural Posture
- SOR issuedJan 31, 2006
- Answer filedFeb 15, 2006
- Hearing heldSep 12, 2006
- Decision dateDec 29, 2006
Cite For
- Financial Irresponsibility as a Disqualifying Factor Under Guideline F
- Falsification of Information on Security Clearance Applications Under Guideline E
- The Importance of Honesty and Integrity in Security Clearance Determinations