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Summary

The applicant, a 26-year-old single male employed by a defense contractor, faced security clearance concerns under Guideline F (Financial Considerations) and Guideline J (Criminal Conduct) due to significant unpaid debts and a prior conviction for theft. The judge found that the applicant's financial situation raised security concerns that were not mitigated, leading to a denial of his security clearance application.

Under Guideline F (Financial Considerations) and Guideline J (Criminal Conduct), the Statement of Reasons alleged the following: Applicant admits that he owes a creditor $1,154 for a past due account. At the hearing, the Applicant expressed some confusion concerning the status of this debt. He was given an opportunity to submit evidence showing that this debt was paid or otherwise resolved. He did not submit any additional information. I find that this debt is Applicant’s, it has not been paid, and he has no current intentions to pay this debt (1.a). Applicant admits that he is indebted to a wireless telephone company in the amount of $1,188 for a past due account. This debt has not been paid, and the Applicant has no current intentions to pay this debt (1.b). Applicant admits that he owes a creditor $86 for a past due account. Applicant has indicated several times that he would resolve this debt, but has not yet done so. This debt has not been paid (1.c). Applicant admits that he owes a creditor $588 for a medical debt. The status of this debt will be discussed along with 1.e., below (1.d). Applicant admits that he owes the same creditor in 1.d. $276 for a second medical debt. Applicant states that he made a payment arrangement with this creditor to pay $478 to resolve both debts, but has not yet made the payment. This debt remains unpaid (1.e). Applicant admits that he owes a debt for a repossessed automobile in the amount of $6,235. The original debt was for $9,235. He made an initial payment of $3,000 and was to make payments of $100 per month beginning in September 2009. He was given an opportunity to submit evidence showing that he was paying this debt. He did not submit any additional information. This debt is still due and owing (1.f). Applicant admits that he owes a debt to a creditor in the amount of $862. He states that he has made a payment agreement with this creditor to begin payments starting November 2009. There is no information that Applicant has made payments on this debt. It is still due and owing (1.g). Applicant denies that he owes a debt to a creditor in the amount of $500. At the hearing, Applicant agreed that he owes this debt, but he indicated some confusion as to the collection agency currently owning the debt. He was given an opportunity to submit evidence showing that this debt was paid or otherwise resolved. He did not submit any additional information. Based on the available information, I find that Applicant has not paid this debt and has no current plans to pay this debt (1.h). Applicant denies that he owes a debt to a creditor in the amount of $275.16 for a bank debt. Applicant stated that he had to pay this debt in order to open his current bank account. He was given an opportunity to submit evidence showing that this debt was paid or otherwise resolved. He did not submit any additional information. Based on the available information, I find that Applicant has not paid this debt (1.i). Applicant denies that he owes a debt to a creditor in the amount of $2,900 in restitution. As further described under Paragraph 2, below, Applicant was arrested and convicted for stealing $4,500 from a bank where he was a teller. As part of his sentence, he was required to pay $6,500 in restitution. Applicant has given conflicting statements as to when he paid this debt off. He was given an opportunity to submit evidence showing that this debt was paid or otherwise resolved. He did not submit any additional information. Based on the available information, I find that Applicant has not paid this debt (1.j). Applicant was employed as a bank teller from February to September 2006. In July 2006 Applicant stole $4,500 from his teller drawer. He was eventually discovered by investigators for the bank, and terminated. Subsequently, he was arrested for Grand Theft. He was convicted and sentenced to three years probation and to make restitution in the amount of $6,500. The probation was due to expire in March 2010. Applicant maintains that he has paid the restitution, but failed to provide documentation to support his statement. Applicant has expressed extreme remorse for his conduct and states that nothing like this will ever happen in the future (2.a). Applicant was employed as a bank teller from February to September 2006. In July 2006 Applicant stole $4,500 from his teller drawer. He was eventually discovered by investigators for the bank, and terminated. Subsequently, he was arrested for Grand Theft. He was convicted and sentenced to three years probation and to make restitution in the amount of $6,500. The probation was due to expire in March 2010. Applicant maintains that he has paid the restitution, but failed to provide documentation to support his statement. Applicant has expressed extreme remorse for his conduct and states that nothing like this will ever happen in the future (2.b).

The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(c), AG ¶ 20(d). The decision turned on the following: The applicant has over $14,000 in past due debts, which he has not made efforts to resolve; The applicant failed to provide evidence of payment for any debts listed in the Statement of Reasons (SOR); The applicant's financial difficulties are longstanding and indicate a lack of good-faith effort to repay creditors.

Why the Applicant Was Denied

• The applicant has over $14,000 in past due debts, which he has not made efforts to resolve.
• The applicant failed to provide evidence of payment for any debts listed in the Statement of Reasons (SOR).
• The applicant's financial difficulties are longstanding and indicate a lack of good-faith effort to repay creditors.

Conditions Referenced

Key Rule Quoted

“Any doubt concerning personnel being considered for access to classified information will be resolved in favor of national security.”

Procedural Posture

• SOR issuedJun 15, 2009
• Answer filedJul 25, 2009
• Hearing heldOct 13, 2009
• Decision dateJun 16, 2010

Cite For

• Financial Overextension as a Disqualifying Condition Under Guideline F
• Impact of Criminal Conduct on Security Clearance Eligibility Under Guideline J
• Importance of Demonstrating Good-faith Efforts to Resolve Financial Obligations