Summary
The applicant, a 53-year-old federal contractor employee, faced security clearance denial under Guidelines E (Personal Conduct), F (Financial Considerations), and J (Criminal Conduct) due to a history of delinquent debts totaling approximately $10,385, a misdemeanor embezzlement conviction, and falsification of his security clearance application. The judge found that the applicant failed to mitigate trustworthiness concerns related to his financial and personal conduct, leading to a denial of eligibility.
Under Guideline E (Personal Conduct), Guideline F (Financial Considerations), and Guideline J (Criminal Conduct), the Statement of Reasons alleged the following: The applicant falsified a security clearance application (SF 86) by failing to disclose a felony arrest (2.a). The applicant admitted his retired pay was garnished but not his wages (2.b). The applicant admitted falsely answering questions 38 and 39, pertaining to delinquent debts, and he offered no explanation (2.c). two debts for $563 and $76 that were placed for collection in October 2000 (1.b). two debts for $563 and $76 that were placed for collection in October 2000 (1.c). a debt to the military exchange system for $4,757 that was charged off as a bad debt in December 2000 (1.d). three debts totaling $4,462 that were placed for collection in 2003 (1.e). three debts totaling $4,462 that were placed for collection in 2003 (1.f). a $527 debt that was placed for collection in May 2005 (1.g). Applicant pleaded guilty to misdemeanor embezzlement in 1994 (3.a).
The judge denied the clearance. The government raised disqualifying conditions F1, F2, F3, E2, J1, J2. The decision turned on the following: The applicant has a history of delinquent debts totaling about $10,385, which he failed to resolve; He pleaded guilty to misdemeanor embezzlement and falsified his security clearance application by omitting relevant criminal and financial information; The applicant did not provide evidence of efforts to mitigate his financial issues or resolve his debts.
Why the Applicant Was Denied
- The applicant has a history of delinquent debts totaling about $10,385, which he failed to resolve.
- He pleaded guilty to misdemeanor embezzlement and falsified his security clearance application by omitting relevant criminal and financial information.
- The applicant did not provide evidence of efforts to mitigate his financial issues or resolve his debts.
Conditions Referenced
- F1raisedFinancial Considerations - History of Not Meeting Financial Obligations
- F2raisedFinancial Considerations - Deceptive or Illegal Financial Practices Such as Embezzlement
- F3raisedFinancial Considerations - Inability or Unwillingness to Satisfy Debts
- E2raisedPersonal Conduct - Deliberate Omission, Concealment, or Falsification of Relevant and Material Facts
- J1raisedCriminal Conduct - Any Conduct, Regardless of Whether the Person Was Formally Charged
- J2raisedCriminal Conduct - A Single Serious Crime or Multiple Lesser Offenses
Key Rule Quoted
“The standard that must be met for . . . assignment to sensitive duties is that, based on all available information, the person's loyalty, reliability, and trustworthiness are such that . . . assigning the person to sensitive duties is clearly consistent with the interests of national security.”
Procedural Posture
- SOR issuedApr 4, 2006
- Answer filedMay 9, 2006
- Hearing held—Case decided on written record.
- Decision dateOct 31, 2006
Cite For
- Denial of Security Clearance Due to Unresolved Financial Issues
- Falsification of Security Clearance Application as a Disqualifying Factor
- Impact of Criminal Conduct on Trustworthiness Determinations