Summary
The applicant, a 35-year-old test technician with a history of financial difficulties, faced security clearance denial under Guideline F for financial considerations and Guideline E for personal conduct. The judge found insufficient evidence to prove intentional falsification of financial information on the application but determined that the applicant's significant unpaid debts and lack of effort to resolve them raised security concerns, leading to the denial of the clearance.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: On or about June 29, 2004, Applicant completed a security-clearance application. In signing the application, Applicant certified that his statements were true, complete, and correct to the best of his knowledge and belief and made in good faith, and that he understood that a false statement could be punished under federal law. Question 38 asked if in the last seven years he had been over 180-days delinquent on any debts. Likewise, Question 39 asked if he was currently over 90-days delinquent on any debts. Applicant answered each question in the negative, and he did not disclose the debts alleged in the SOR (2.a). Applicant denies intentionally providing false answers. He explained that he completed the application in a hurried fashion and misunderstood the questions (2.b). $149 collection account. The debt has not been paid (1.a). $301 collection account. The debt has not been paid (1.b). $143 collection account. The debt has not been paid (1.c). $1,623 charged-off credit card account. Applicant owes an unknown amount on this debt (1.d). $441 charged-off account. The debt has not been paid (1.e). $7,924 student loan account that has been turned over for collection. Applicant stopped making payments on this account sometime before 2004 (1.f). $5,726 student loan account that has been turned over for collection. In April 2006, the IRS intercepted the sum of $842.31 and it was paid to the creditor. Otherwise, Applicant has made no payments on this account (1.g). $1,103 collection account. The evidence is insufficient to establish the existence of this account (1.h).
The judge denied the clearance. The government raised disqualifying conditions F.1, E.2. The decision turned on the following: The applicant has a history of not meeting financial obligations, with eight delinquent accounts totaling over $17,000; The applicant failed to demonstrate a good-faith effort to resolve his financial issues, particularly regarding two student loans; The lack of documentary evidence about his financial condition complicated the case and contributed to the denial.
Why the Applicant Was Denied
- The applicant has a history of not meeting financial obligations, with eight delinquent accounts totaling over $17,000.
- The applicant failed to demonstrate a good-faith effort to resolve his financial issues, particularly regarding two student loans.
- The lack of documentary evidence about his financial condition complicated the case and contributed to the denial.
Conditions Referenced
- F.1raisedFinancial Considerations
- E.2raisedPersonal Conduct
Key Rule Quoted
“The decision to deny a person a security clearance is not a determination of an applicant's loyalty. Instead, it is a determination that the applicant has not met the strict guidelines the President has established for granting a clearance.”
Procedural Posture
- SOR issuedDec 23, 2005
- Answer filedJan 24, 2006
- Hearing heldMay 25, 2006
- Decision dateJul 18, 2006
Cite For
- Denial Based on Significant Unpaid Debts Under Guideline F
- Insufficient Evidence of Intentional Falsification Under Guideline E
- Lack of Good-faith Effort to Resolve Financial Issues as a Security Concern