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Summary

The applicant, a 50-year-old registered nurse employed by a defense contractor, faced trustworthiness concerns under Guideline F due to significant financial issues, including multiple bankruptcy filings, unfiled tax returns, and numerous delinquent accounts totaling over $137,000. The administrative judge concluded that the applicant failed to provide sufficient evidence to mitigate these concerns, ultimately denying her eligibility for a public trust position.

Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant filed four voluntary petitions for bankruptcy under Chapter 13 that were dismissed because of her failure to make plan payments to the trustee (1.a). Applicant failed to file her federal and state income tax returns for the tax years 2010, 2011, 2012, 2013, 2014, 2015, and 2016 (1.b). Applicant has a federal tax lien and a substantial number of delinquent accounts, including unpaid federal and state income taxes (1.c). Applicant has 21 delinquent accounts totaling approximately $137,935 (1.d). Applicant failed to make payments on various medical accounts with unpaid balances (1.e). Applicant has a student loan with a total balance of $60,515, of which $4,361 is past due (1.f). Applicant has an automobile loan with a past-due and unpaid balance of $20,066 that was charged off (1.g). Applicant has various medical accounts with unpaid balances totaling $2,202, $509, $485, $247, $242, $205, $174, $169, $169, and $121 (1.h). Applicant has bank-issued credit-card accounts with unpaid balances of $845 and $366 (1.i). Applicant has a bank-issued credit-card account with an unpaid balance of $512 that was sold to a debt purchaser (1.j). Applicant has a federal tax lien in the amount of $9,649 that was filed against her in 2010 (1.k). Applicant contended that the lien should have been resolved before her interview by the OPM investigator (1.l).

The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c), AG ¶ 19(f). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(g). The decision turned on the following: The applicant admitted to multiple allegations of financial mismanagement, including bankruptcy filings and unfiled tax returns; The applicant failed to provide documentation supporting her claims of resolving delinquent accounts or filing tax returns; The judge found that the applicant's ongoing financial issues raised significant questions about her reliability and trustworthiness.

Why the Applicant Was Denied

• The applicant admitted to multiple allegations of financial mismanagement, including bankruptcy filings and unfiled tax returns.
• The applicant failed to provide documentation supporting her claims of resolving delinquent accounts or filing tax returns.
• The judge found that the applicant's ongoing financial issues raised significant questions about her reliability and trustworthiness.

Conditions Referenced

Key Rule Quoted

“A person who seeks access to sensitive information enters into a fiduciary relationship with the Government predicated upon trust and confidence.”

Procedural Posture

• SOR issuedMar 29, 2019
• Answer filedJun 5, 2019Applicant elected to have the case decided on the written record.
• Hearing held—No hearing was held; decision made on the written record.
• Decision dateOct 22, 2019

Cite For

• Denial of Eligibility Due to Significant Financial Mismanagement Under Guideline F
• Failure to Provide Sufficient Evidence to Mitigate Financial Concerns
• Importance of Documentation in Resolving Financial Issues for Trustworthiness Determinations