Summary
A 55-year-old material handler with 34 years of service was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The applicant had numerous delinquent debts totaling approximately $11,700, some outstanding since 2000, 2002, and 2003. These included credit card debts and department store accounts.
The Statement of Reasons alleged that the applicant deliberately failed to provide truthful information regarding her debts on her security clearance application. Disqualifying conditions were raised under E2.A6.1.2.1, E2.A6.1.2.3, and E2.A5.1.2.2. While the applicant successfully mitigated concerns related to personal conduct under Guideline E, applying mitigating conditions E2.A6.1.3.3 and E2.A5.1.3.5, she could not mitigate the financial considerations.
The denial was based on her history of significant unpaid delinquent debts and her failure to make efforts to resolve them despite having expendable income. The deliberate omission of truthful information about her debts on the application was also a contributing factor.
Why the Applicant Was Denied
- Applicant has a history of significant delinquent debts that remain unpaid.
- Despite having expendable income, the applicant failed to make efforts to resolve her debts.
- The applicant deliberately omitted truthful information regarding her debts on her security clearance application.
Conditions Referenced
- E2.A6.1.2.1raisedA History of Not Meeting Financial Obligations
- E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts
- E2.A5.1.2.2appliedThe Deliberate Omission, Concealment or Falsification of Relevant and Material Facts
- E2.A6.1.3.3appliedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's ControlApplicant's financial difficulties initially stemmed from her divorce.
- E2.A5.1.3.5appliedThe Individual Has Taken Positive Steps to Significantly Reduce or Eliminate Vulnerability to Coercion, Exploitation, or DuressApplicant's recent understanding of the gravity of her error.
Key Rule Quoted
“"The clearly consistent standard indicates that security clearance determinations should err, if they must, on the side of denials."”
Procedural Posture
- SOR issuedMar 13, 2006
- Answer filedApr 4, 2006Applicant elected to have a hearing.
- Hearing heldNov 15, 2006
- Decision dateDec 11, 2006
Cite For
- Denial of Security Clearance Due to Significant Delinquent Debts Under Guideline F
- Deliberate Omission of Financial Information on Security Clearance Application Under Guideline E
- Consideration of Personal Circumstances in Financial Responsibility Assessments.