Loading case…

Summary

The applicant, a 26-year-old senior network specialist, faced concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations) due to fraudulent use of another person's credit account and eleven delinquent debts totaling $13,497.00. While the applicant mitigated the personal conduct concerns, she failed to provide sufficient evidence to mitigate the financial concerns, resulting in a denial of her security clearance.

Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Between August 16 and 24, 2000, while a member of the United States Army, Applicant used another person's credit card to purchase merchandise of more than $1,000.00 in value, including a camcorder and a TV/VCR. She made the purchases online using a government computer and had the merchandise sent to her address. Applicant was charged with larceny of private funds, computer fraud and mail fraud. In lieu of court-martial, she was administratively separated from the Army and received an other than honorable discharge on December 27, 2000. At the time of her discharge, Applicant had completed two years, 11 months, and 14 days of military service (1.a). In August 2001, Applicant opened a credit card account with a bank. She incurred a $1,046.00 debt that she did not paid. The bank charged it off as a bad debt (2.a). In August 2001, Applicant opened a second credit card account with a bank. She incurred a $1,453.00 debt that she did not paid. The bank charged it off as a bad debt (2.b). In January 2002, a collection account was opened against Applicant in the amount of $4,943.00. She has not paid the debt (2.c). In July 1999, Applicant opened a credit account with a department store. She incurred a $229.00 debt that she did not paid (2.d). In May 2002, a collection account was opened against Applicant in the amount of $298.00 for an unpaid hospital bill. On June 1, 2004, she made a $60.00 payment on the account (2.e). In March 2002, a collection account was opened against Applicant for an unpaid newspaper account in the amount of $48.00. On June 9, 2004, Applicant paid the account in full (2.f). In August 2001, a collection account was opened against Applicant for an unpaid doctor's bill in the amount of $227.00. Applicant testified she had agreed to pay off the bill by making two payments in June 2004. However, she has not provided corroboration of any payment (2.g). In July 2001, a collection account was opened against Applicant in the amount of $1,919.00 for unpaid cable service. She testified she had reduced the amount to $319.14 by returning equipment and had entered into a payment plan to pay $52.00 per month. However, Applicant has not provided any documentation or other evidence to corroborate this (2.h). In August 2002, a judgment was awarded against Applicant in the amount of $567.00 for unpaid rent. Applicant testified she paid the judgment in cash and obtained a receipt. However, she has not provided any corroboration of the payment (2.i). In September 2001, a judgment was entered against Applicant in the amount of $1,502.00 for unpaid rent of an apartment (2.j). In December 2001, another judgment was awarded against Applicant in the amount of $1,265.00 for cleaning costs related to the same apartment (2.k).

The judge denied the clearance. The government raised disqualifying conditions E2.A6.1.2.1, E2.A6.1.2.3. The judge applied mitigating conditions E2.A6.1.3.6. The decision turned on the following: The applicant failed to mitigate financial concerns arising from eleven delinquent debts totaling $13,497.00; The applicant only corroborated payments on two minor debts, leaving the majority of debts unresolved.

Why the applicant prevailed

• The applicant mitigated personal conduct concerns related to fraudulent use of another person's credit account.

Conditions referenced

Key rule quoted

“"[N]o one has a 'right' to a security clearance."”

Procedural posture

• SOR issuedDec 5, 2003
• Answer filedJan 14, 2004
• Hearing heldJun 10, 2004Applicant allowed until 07/08/2004 to submit proof of payments.
• Decision dateApr 26, 2005

Cite for

• Mitigation of Personal Conduct Under Guideline E
• Failure to Mitigate Financial Obligations Under Guideline F
• Requirements for Corroboration of Debt Payments in Security Clearance Cases