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Summary

The applicant, a 48-year-old Technical Support Specialist with a high school diploma and some college education, sought a determination of trustworthiness for an ADP II/III position. The case involved financial issues, including a history of bad checks, bankruptcy, and significant outstanding debts totaling approximately $18,000. The judge found that the applicant's financial irresponsibility indicated poor judgment and unreliability, leading to a denial of the trustworthiness determination.

Under Guideline F (Financial Considerations) and Guideline J (Criminal Conduct), the Statement of Reasons alleged the following: The Applicant is indebted to a hotel in the approximate amount of $926.00, for a non-sufficient fund check written for $400.00, on August 20, 1996. The debt remains outstanding (1.c). The Applicant is indebted to a dentist in the approximate amount of $68.88, for a delinquent account referred to collection on March 24, 1997. The debt remains outstanding (1.d). The Applicant is indebted to a bank in the approximate amount of $482.00, a delinquent account charged off as a bad debt in April 1997. The debt remains outstanding (1.e). The Applicant is indebted to the Attorney General's Office in the approximate amount of $156.00, for a delinquent account referred to collection in about July 1997. The Applicant denies this debt as she does not know what it is for (1.f). The Applicant is indebted to a water company in the approximate amount of $150.83, for a delinquent account referred to collection on October 13, 1997. The Applicant has been in contact with the creditor, but the debt remains outstanding (1.g). The Applicant is indebted to a bank for a delinquent credit card account for an undetermined amount that was charged off to Profit and Loss in October 1997. The debt remains outstanding in the amount of $1,143.00 (1.h). The Applicant is indebted to a cable company in the approximate amount of $429.12, for an account referred to collection on April 8, 1998. The Applicant states that she has returned the cable boxes to the cable company, and believes that she does not owe any more (1.i). The Applicant is indebted to a check cashing service in the approximate amount of $158.56, for a delinquent account referred to collection on November 25, 1998. The debt remains outstanding (1.j). The Applicant is indebted to a check cashing service in the approximate amount of $201.00, for a non-sufficient fund check that was referred to collection in December 1998. The debt remains outstanding (1.k). The Applicant is indebted to a telephone company in the approximate amount of $494.37, for an account referred to collection on June 11, 1999. The debt remains outstanding (1.l). The Applicant is indebted for medical services in the approximate amount of $234.00, for two accounts referred to collection in January 2000. The Applicant denies the debt, as this debt was incurred for medical services rendered to her daughter, who was supposed to be covered by medical insurance that should have paid the debt (1.m). The Applicant is indebted to a medical center in the approximate amount of $1,007.00, for three delinquent accounts referred to collection in January 2000. The Applicant denies the debt, as this debt was incurred for medical services rendered to her daughter, who was supposed to be covered by medical insurance that should have paid the debt (1.n). The Applicant is indebted to the U. S. Department of Education in the approximate amount of $3,737.00, for a delinquent account referred to collection. The debt remains outstanding (1.o). The Applicant is indebted a credit card company in the approximate amount of $2,010.00, for a delinquent account referred to collection. The Applicant denies this debt, as she believes it was discharged in her 1994 Chapter 7 bankruptcy (1.p). The Applicant is indebted to a credit card company in the approximate amount of $11,012.00, for a delinquent account referred to collection. The Applicant denies this debt as she believes it was discharged in her 1994 Chapter 7 bankruptcy (1.q).

The judge denied the clearance. The government raised disqualifying conditions F1, F3. The decision turned on the following: The applicant has a history of financial irresponsibility, including writing bad checks and filing for bankruptcy; The applicant has approximately $18,000 in outstanding debts, demonstrating an inability to manage financial obligations; The applicant failed to provide persuasive evidence of mitigation or resolution of her debts.

Why the Applicant Was Denied

• The applicant has a history of financial irresponsibility, including writing bad checks and filing for bankruptcy.
• The applicant has approximately $18,000 in outstanding debts, demonstrating an inability to manage financial obligations.
• The applicant failed to provide persuasive evidence of mitigation or resolution of her debts.

Conditions Referenced

Key Rule Quoted

“The adjudicative process is an examination of a sufficient period of a person's life to make an affirmative determination that the person is eligible for a security clearance.”

Procedural Posture

• SOR issuedMay 31, 2001
• Answer filedAug 9, 2001
• Hearing heldFeb 6, 2002
• Decision dateMar 18, 2002

Cite For

• Financial Irresponsibility as a Basis for Denial Under Guideline F
• Impact of Unresolved Debts on Trustworthiness Determinations
• The Importance of Demonstrating Financial Management in Security Clearance Cases