Summary
A 30-year-old defense contractor employee was denied a security clearance due to concerns under Guidelines E (Personal Conduct), F (Financial Considerations), and J (Criminal Conduct). The denial stemmed from her past criminal conduct, which included the fraudulent use of a client's credit card in August 1998, totaling over $5,000 for personal items and necessities over two months. This was aggravated by her subsequent forgery of a reference letter from her supervisor, for which she was criminally charged and convicted of a misdemeanor.
Financial concerns also contributed to the denial. The applicant had a $425 debt charged off in June 2002, which she settled by agreeing to pay $106 in November and December 2002. She also had a $1,304 delinquent debt submitted for collection in June 2002 and a $610 debt charged off in June 2002, both of which she admitted were delinquent due to prioritizing other accounts. Furthermore, she owed over $8,000 from the fraudulent credit card use, with a balance of $5,400 remaining in October 2002, despite making $114 monthly payments since January 2000.
Despite expressing remorse and demonstrating some progress in her financial situation, the applicant failed to fully mitigate the concerns. The decision cited her criminal conduct, lack of full restitution for debts, and a pattern of dishonesty, along with the absence of a comprehensive plan to resolve her outstanding financial obligations. Consequently, her security clearance was denied.
Why the Applicant Was Denied
- The applicant's criminal conduct included the fraudulent use of a client's credit card and forgery, which raised significant security concerns.
- She has not made full restitution for her debts and only began payments in 2000, indicating a lack of financial responsibility.
- The applicant's pattern of dishonesty and failure to demonstrate a comprehensive plan to resolve her debts contributed to the denial.
Conditions Referenced
- J1.araisedCriminal Conduct
- E1raisedPersonal Conduct
- F1raisedFinancial Considerations
- F3raisedFinancial Considerations
- J2.aappliedCriminal ConductThe criminal behavior was not recent.
- F6appliedFinancial ConsiderationsThe individual initiated a good-faith effort to repay overdue creditors.
- F1rejectedFinancial ConsiderationsThe behavior was not recent.
- F3rejectedFinancial ConsiderationsThe individual did not demonstrate a willingness to satisfy debts.
Key Rule Quoted
“A history or pattern of criminal activity creates doubt about a person's judgment, reliability and trustworthiness.”
Procedural Posture
- SOR issuedJul 30, 2002
- Answer filedAug 16, 2002Notarized response to SOR.
- Hearing heldOct 22, 2002Applicant testified and submitted additional evidence.
- Decision dateDec 31, 2002
Cite For
- Denial of Security Clearance Due to Criminal Conduct Under Guideline J
- Impact of Financial Irresponsibility on Security Clearance Eligibility Under Guideline F
- Consideration of Personal Conduct and Dishonesty in Security Clearance Decisions Under Guideline E