Summary
The applicant, a 39-year-old security administrator, sought a security clearance but was denied due to significant financial issues and a history of criminal conduct, including felony charges for forgery and theft. The judge found that the applicant's financial difficulties and lack of candor in her e-QIP raised serious concerns about her reliability and trustworthiness.
Under Guideline E (Personal Conduct), Guideline F (Financial Considerations), and Guideline J (Criminal Conduct), the Statement of Reasons alleged the following: The Applicant filled out her Electronic Questionnaire for Investigations Purposes (e-QIP) on November 1, 2006. Question 27.d. asks whether, in the last seven years, she had any judgments against her which had not been paid. The Applicant admitted the judgement set forth in subparagraph 1.c. She did not admit the three other judgments set forth in subparagraphs 1.a., 1.b., and 1.dd. This was a false answer to a relevant question (3.a). The Applicant admits that she is indebted to a law firm in the original amount of $13,137.13 for a judgment based on an eviction. The Applicant’s pay is currently being garnished to pay this judgment (1.a). The Applicant denied that she currently owed any money for a judgment in the approximate amount of $1,698.00. She admitted that a judgment was entered against her for that amount based on an eviction, but she stated, 'That was paid years ago, before I moved back to [State A].' (1.b). The Applicant denied that she currently owed any money for a judgment in the approximate amount of $1,512.00. She admitted that a judgment was entered against her for that amount based on an eviction, but she submitted evidence showing that the judgment was satisfied (1.c). The Applicant admits that she is indebted to a collection agency in the approximate amount of $271.00. She stated that this was in relation to a failed attempt to obtain insurance from the Automobile Club, and that the debt is not appropriate (1.d). The Applicant admits that she is indebted to a collection agency in the approximate amount of $735.00. She stated that this was in relation to her employment activities at a prior job related to purchasing water for the office, and that the debt should not be her responsibility (1.e). The Applicant admits that she is indebted for three different accounts in relation to her cable company. The total indebtedness was originally approximately $1,030.00 (1.f). The Applicant admits that she is indebted to a collection agency in the amount of $70.00 for a returned check (1.i). The Applicant admits that she is indebted to a collection agency in the amount of $7,195.00 for an automobile loan in connection with a car that was wrecked (1.n). The Applicant admits that she was indebted to a collection agency in the amount of $592.00. She states that she paid this debt in approximately 2007 (1.o). The Applicant admits that she is indebted to a collection agency in the amount of $46.00 for a returned check (1.p). The Applicant admits that she is indebted to a collection agency in the amount of $734.00 for a medical bill that has been due and owing since 2001 (1.q). The Applicant admits that she is indebted to a collection agency in the amount of $1,014.00. The Applicant was making payments on this debt until April 2008, and had reduced the debt to $814.00 (1.r). The Applicant admits that she was indebted to a department store in the amount of $400.00. She submitted evidence that she had paid the debt in 2002 (1.s). The Applicant denied that she was indebted to a law firm in the approximate amount of $125.00 for a returned check. She submitted evidence that she paid this debt in 2007 (1.t). The Applicant admits that she was indebted to a bank in the approximate amount of $2,769.00. She states that she was making payments on this debt and had reduced it to approximately $2,000.00 by April 2008, when she had to stop because of her garnishment (1.u). The Applicant admits that she was indebted to a collection agency in the amount of $75.00. She submitted evidence that she had paid this debt (1.v). The Applicant admits that she is indebted to a collection agency in the approximate amount of $384.00. The Applicant has made no payments on this debt and has no current intention to make payments on this debt (1.w). The Applicant admits that she was indebted to a collection agency in the amount of $128.00 for bad checks used to pay for her children’s passports. The Applicant testified that she had paid these debts (1.x). The Applicant admits that she is indebted to a collection agency in the amount of $251.00 for a veterinary bill. The Applicant has made no payments on this debt and has no current intention to make payments on this debt (1.y). The Applicant admits that she is indebted to a collection agency in the amount of $235.00 for a medical bill. She testified that she has a dispute with the medical provider about the debt, but has not disputed the debt with the credit reporting agencies (1.z). The Applicant moved to State B in early 1996. Due to having a vehicle repossessed for non-payment, the Applicant did not have a vehicle. She testified: I rented a mini-van and I was making payments, it was coming out of our credit card, but I no longer had funds or the availability to continue paying it. So, at that time, I kept the van for maybe over 30 days and that’s - - and it wasn’t returned, so that’s why it was considered a felony larceny, I guess. She was eventually arrested for this offense and required to pay restitution to the rental car company. The amount she paid was approximately $10,000.00 (2.a). The Applicant, also in 1996, used an intermediary to open a bank account in the other person’s name. The Applicant would knowingly write bad checks on this account and withdraw money from ATM machines knowing there was insufficient money in the account. The Applicant was eventually arrested and charged with four counts of Forgery and one of Fraud, all felonies. She plead guilty and was sentenced to two years probation, six months of financial counseling and paid restitution of at least $3,000.00. Her probation was terminated early and the charge reduced to a misdemeanor (2.b). The Applicant was arrested in 2003 for misdemeanor theft. In this incident, she used a procurement card provided by her employer to buy personal items. She plead guilty and sentenced to three years informal probation, pay restitution of approximately $300.00 and fined (2.c). This subparagraph states that the incidents described in subparagraphs 3.a. through 3.f., below, amount to criminal conduct. Specifically, that they are cognizable under 18 U.S.C. §1001 (2.d).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 20, AG ¶ 19, AG ¶ 14. The decision turned on the following: The applicant has a history of financial irresponsibility, including numerous unpaid debts and judgments; The applicant engaged in criminal conduct, including felony forgery and theft, which undermines her trustworthiness; The applicant provided false information on her e-QIP regarding her financial situation and criminal history.
Why the Applicant Was Denied
- The applicant has a history of financial irresponsibility, including numerous unpaid debts and judgments.
- The applicant engaged in criminal conduct, including felony forgery and theft, which undermines her trustworthiness.
- The applicant provided false information on her e-QIP regarding her financial situation and criminal history.
Conditions Referenced
- AG ¶ 20appliedCriminal Conduct
- AG ¶ 19appliedFinancial Considerations
- AG ¶ 14appliedPersonal Conduct
Key Rule Quoted
“"The security clearance decision is not a determination of an applicant's overall character, but rather a determination of whether the applicant is eligible for access to classified information."”
Procedural Posture
- SOR issuedAug 6, 2008
- Answer filedOct 7, 2008
- Hearing heldFeb 5, 2009via MS Teams
- Decision dateApr 17, 2009
Cite For
- Financial Irresponsibility as a Disqualifying Factor Under Guideline F
- Criminal Conduct Impacting Security Clearance Eligibility Under Guideline J
- Lack of Candor in E-qip Responses Under Guideline E