Summary
A 34-year-old defense contractor and former Navy service member was denied eligibility for access to classified information due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The Statement of Reasons detailed several financial issues, including a $13,511 charged-off credit card account, a $10,653 deficiency after vehicle repossession, and another charged-off credit card account for $9,754. Additionally, the applicant had a credit card account placed for collection for $758, failed to file federal income tax returns for 2017, and had delinquent federal taxes totaling $3,000.
The administrative judge found that the applicant failed to mitigate these concerns. Disqualifying conditions were raised under AG ¶ 19(a), AG ¶ 19(c), AG ¶ 19(d), AG ¶ 19(f), AG ¶ 16(c), AG ¶ 16(d), and AG ¶ 16(f). While mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(d), and AG ¶ 20(g) were applied, they were insufficient to overcome the concerns.
The denial was based on the applicant's admission to multiple allegations of recent and numerous financial irresponsibility, indicating a lack of financial stability. Furthermore, the applicant's misuse of a company credit card over an extended period demonstrated questionable judgment and a lack of candor.
Why the applicant was denied
- The applicant admitted to multiple allegations of financial irresponsibility, including charged-off credit card accounts and delinquent taxes.
- The applicant's financial issues were recent and numerous, indicating a lack of financial stability.
- The applicant's misuse of a company credit card over an extended period demonstrated questionable judgment and lack of candor.
Conditions referenced
- AG ¶ 19(a)appliedInability to Satisfy Debts
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 19(d)appliedDeceptive or Illegal Financial Practices
- AG ¶ 19(f)appliedFailure to File or Fraudulently Filing Annual Federal, State, or Local Income Tax Returns
- AG ¶ 16(c)appliedCredible Adverse Information in Several Adjudicative Issue Areas
- AG ¶ 16(d)appliedCredible Adverse Information That Is Not Explicitly Covered Under Any Other Guideline
- AG ¶ 16(f)appliedViolation of a Written or Recorded Commitment Made by the Individual to the Employer
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to Recur
- AG ¶ 20(b)rejectedConditions That Resulted in Financial Problems Were Largely Beyond the Person's Control
- AG ¶ 20(d)appliedInitiated and Adhering to a Good-faith Effort to Repay Overdue Creditors
- AG ¶ 20(g)rejectedMade Arrangements with the Appropriate Tax Authority to File or Pay the Amount Owed
Key rule quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural posture
- SOR issuedNov 13, 2018
- Answer filedDec 17, 2018
- Hearing heldMar 26, 2019
- Decision dateApr 26, 2019
Cite for
- Denial of Security Clearance Due to Financial Irresponsibility Under Guideline F
- Impact of Personal Conduct on Security Clearance Eligibility Under Guideline E
- Consideration of Whole-person Assessment in Security Clearance Decisions.