Summary
The applicant, a 40-year-old defense contractor, sought to retain his eligibility for a public trust position but was denied due to unresolved financial issues and a lack of responsible action to address them. The judge found that the applicant's long-standing financial difficulties, including delinquent debts and failure to file tax returns, raised significant trustworthiness concerns under Guidelines E and F.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: While Applicant was out of town, someone broke into his apartment. The landlord never contacted him and simply repaired the door. Although he was in the middle of his lease, Applicant broke his lease and, as he characterized it, “unwisely” moved out. The account, with a remaining balance of $3,301, was placed for collection in 2011 (1.a). There are two telephone accounts that were placed for collection; one for $370 (1.b). One credit card account that was charged off and sold or transferred for $450 (1.c). Two credit card accounts that were placed for collection for $2,346 (1.d). Two credit card accounts that were placed for collection for $532 (1.e). One telephone account that was placed for collection for $148 (1.f). One utility account that was placed for collection for $96 (1.g). Applicant currently owes the Internal Revenue Service (IRS) approximately $1,887 in unpaid taxes (1.h). Applicant owes the IRS approximately $2,351 for the year 2007 (1.i). Applicant owes the IRS approximately $3,161 for the year 2008 (1.j).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The decision turned on the following: The applicant failed to demonstrate a good-faith effort to resolve his financial delinquencies; He did not contact creditors or establish repayment plans for his debts; The applicant's financial issues were longstanding and indicative of poor judgment.
Why the Applicant Was Denied
- The applicant failed to demonstrate a good-faith effort to resolve his financial delinquencies.
- He did not contact creditors or establish repayment plans for his debts.
- The applicant's financial issues were longstanding and indicative of poor judgment.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
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 issuedJun 13, 2014
- Answer filedJul 18, 2014
- Hearing heldNov 18, 2014
- Decision dateDec 23, 2014
Cite For
- Failure to Mitigate Financial Considerations Under Guideline F
- Lack of Good-faith Efforts to Resolve Debts
- Trustworthiness Concerns Due to Financial Irresponsibility