Summary
The applicant, a 74-year-old supply clerk for a defense contractor, faced security clearance denial due to significant financial issues, including unpaid debts and falsification of financial information on his application. Despite a monthly surplus of $1,500, he failed to demonstrate responsible financial management or mitigate the concerns raised under Guideline F (Financial Considerations) and Guideline E (Personal Conduct).
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant falsified material facts in his reply to the following question: 36. Your Financial Record - Tax Lien in the Last 7 Years. Have you had a lien placed against your property for failing to pay taxes or other debts? He answered "No," and failed to disclose that he had both state and federal income tax liens (2.a). Applicant falsified material facts in his reply to the following question: 37. Your Financial Record - Unpaid Judgments In the last 7 years, have you had any judgments against you that have not been paid? He answered "No," failing to list the two judgments set forth in SOR subparagraphs 1.b. and 1.c (2.b). Applicant falsified material facts in his reply to the following question: 38. Your Financial Delinquencies - 180 Days In the last 7 years, have you been over 180 days delinquent on any debt(s)? He answered "No," failing to disclose that he had been over 180 days delinquent on debts, as set forth in SOR subparagraphs 1.f. through 1.m (2.c). Applicant falsified material facts when he answered "No" to the following question: 39. Your Financial Delinquencies - 90 Days Are you currently over 90 days delinquent on any debt(s)? He failed to disclose that he was then over 90 days delinquent on debts, as set forth in SOR subparagraphs 1.f. through 1.m (2.d). $1,504 for an unpaid judgment (1.b). $545 for an unpaid judgment (1.c). $5,952 for a state income tax lien (1.d). $9,950 for a federal income tax lien (1.e). $1,455 for an account placed for collection (1.f). $1,052 for an account placed for collection (1.g). $259 for an account charged off (1.h). $851 for an account placed for collection (1.i). $222 for an account placed for collection (1.j). $175 for an account charged off (1.k). $358 for an account placed for collection (1.l). $1,046 for an account charged off (1.m). $14,000 child support arrearage (1.n).
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. The decision turned on the following: The applicant has a long history of financial problems, including unpaid debts and tax liens; He falsified material facts on his security clearance application regarding his financial situation; The applicant failed to demonstrate a good-faith effort to resolve his debts or manage his finances responsibly.
Why the Applicant Was Denied
- The applicant has a long history of financial problems, including unpaid debts and tax liens.
- He falsified material facts on his security clearance application regarding his financial situation.
- The applicant failed to demonstrate a good-faith effort to resolve his debts or manage his finances responsibly.
Conditions Referenced
- E2.A6.1.2.1raisedA History of Not Meeting Financial Obligations
- E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts
- E2.A5.1.2.2raisedThe Deliberate Omission, Concealment, or Falsification of Relevant and Material Facts
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 issuedMay 25, 2006
- Answer filedJul 10, 2006
- Hearing heldNov 7, 2006rescheduled from original date
- Decision dateDec 28, 2006
Cite For
- Denial Based on Financial Irresponsibility Under Guideline F
- Falsification of Information on Security Clearance Applications Under Guideline E
- Importance of Demonstrating Financial Responsibility for Security Clearance Eligibility