Summary
The applicant, a 40-year-old government contractor employee, faced trustworthiness concerns under Guidelines E and F due to significant financial delinquencies totaling approximately $35,452 and allegations of providing false information on her trustworthiness application. Despite her claims of financial distress and efforts to address some debts, the judge found that the applicant did not mitigate the financial concerns, leading to a denial of eligibility for access to sensitive information.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant deliberately provided false information while completing her trustworthiness application in March 2014 by failing to list her past-due financial obligations and by failing to list her 1996 felony arrest (2.a). Applicant failed to list her felony arrest on her application (2.b). $1,089 remains unpaid. She received a settlement offer from collection service in May 2015. Applicant said she would pay by January 2016. No proof of payment submitted. Unresolved (1.a). $218 remains unpaid, no contact with creditor. Unresolved (1.b). $436 paid between April 2015 and June 2015. These debts are resolved (1.c). $430 paid between April 2015 and June 2015. These debts are resolved (1.d). $280 paid between April 2015 and June 2015. These debts are resolved (1.e). $508 paid between April 2015 and June 2015. These debts are resolved (1.f). $502 paid between April 2015 and June 2015. These debts are resolved (1.g). $2,000 school debt for dropped class. Made one $25 payment in June 2015 and a $105 payment in July 2015, no further payments made. Unresolved (1.h). $483 received an offer to settle this account in August 2015. No proof of payment. Unresolved (1.i). $321 has made payments (last payment in March 2015) to decrease the balance owed to $160. Account is being resolved (1.j). $6,780 completed student loan rehabilitation program and getting these two loans out of delinquency. She has not started making regular payments on the rehabilitated loans. Unresolved (1.k). $4,706 completed student loan rehabilitation program and getting these two loans out of delinquency. She has not started making regular payments on the rehabilitated loans. Unresolved (1.l). $4,253 two deficiency balances from repossessed vehicles. Applicant contacted one creditor after hearing and received a settlement offer in January 2016, but provided no proof of payment. Unresolved (1.m). $5,403 two deficiency balances from repossessed vehicles. Applicant contacted one creditor after hearing and received a settlement offer in January 2016, but provided no proof of payment. Unresolved (1.n). $1,030 contacted creditor post-hearing and received a settlement offer in January 2016, but provided no proof of payment. Unresolved (1.o). $311 judgment remains unpaid. Applicant pointed out she paid a non-SOR judgment in December 2014. The SOR judgment remains unpaid. Unresolved (1.p). $344 this account was removed from Applicant’s credit report, but she admitted that it was not paid. Unresolved (1.q). $957 provided proof of payment. Resolved (1.r). $586 this account was removed from Applicant’s credit report, but she admitted that it was not paid. Unresolved (1.s). $447 these accounts were removed from Applicant’s credit report, but she admitted that they were not paid, except for 1.x, but she failed to provide proof of payment. Unresolved (1.t). $39 these accounts were removed from Applicant’s credit report, but she admitted that they were not paid, except for 1.x, but she failed to provide proof of payment. Unresolved (1.u). $386 these accounts were removed from Applicant’s credit report, but she admitted that they were not paid, except for 1.x, but she failed to provide proof of payment. Unresolved (1.v). $2,532 these accounts were removed from Applicant’s credit report, but she admitted that they were not paid, except for 1.x, but she failed to provide proof of payment. Unresolved (1.w). $235 these accounts were removed from Applicant’s credit report, but she admitted that they were not paid, except for 1.x, but she failed to provide proof of payment. Unresolved (1.x). $91 these accounts were removed from Applicant’s credit report, but she admitted that they were not paid, except for 1.x, but she failed to provide proof of payment. Unresolved (1.y). $27 these accounts were removed from Applicant’s credit report, but she admitted that they were not paid, except for 1.x, but she failed to provide proof of payment. Unresolved (1.z). $508 these accounts were removed from Applicant’s credit report, but she admitted that they were not paid, except for 1.x, but she failed to provide proof of payment. Unresolved (1.aa). $260 debts unpaid. Applicant stated she would pay by January 2016. No proof of payment. Unresolved (1.ab). $88 debts unpaid. Applicant stated she would pay by January 2016. No proof of payment. Unresolved (1.ac). $202 debts unpaid. Applicant stated she would pay by January 2016. No proof of payment. Unresolved (1.ad).
The judge denied the clearance. The government raised disqualifying conditions F.19.a, F.19.c. The judge applied mitigating conditions F.20(b), F.20(c), F.20(d). The decision turned on the following: The applicant admitted to significant financial delinquencies totaling approximately $35,452, which raised trustworthiness concerns under Guideline F; The applicant failed to provide sufficient evidence of a plan to resolve her outstanding debts, with many remaining unpaid and unaddressed; The applicant's financial situation was deemed insufficiently stable to mitigate concerns about her reliability and trustworthiness.
Why the Applicant Was Denied
- The applicant admitted to significant financial delinquencies totaling approximately $35,452, which raised trustworthiness concerns under Guideline F.
- The applicant failed to provide sufficient evidence of a plan to resolve her outstanding debts, with many remaining unpaid and unaddressed.
- The applicant's financial situation was deemed insufficiently stable to mitigate concerns about her reliability and trustworthiness.
Conditions Referenced
- F.19.araisedInability or Unwillingness to Satisfy Debts
- F.19.craisedHistory of Not Meeting Financial Obligations
- F.20(b)appliedConditions Largely Beyond the Person's ControlThe applicant's financial distress was influenced by her husband's situation and lack of health insurance.
- F.20(c)rejectedReceived or Receiving Counseling for the ProblemThe applicant presented no evidence of financial counseling.
- F.20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant's limited efforts were insufficient given the totality of her debts.
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 issuedJul 7, 2015
- Answer filedAug 14, 2015
- Hearing heldDec 11, 2015
- Decision dateJun 28, 2016
Cite For
- Trustworthiness Concerns Related to Financial Delinquencies Under Guideline F
- Insufficient Evidence of Intent to Deceive Regarding Personal Conduct Under Guideline E
- Consideration of the Whole-person Concept in Trustworthiness Determinations