Summary
A 66-year-old defense contractor employee was evaluated for a security clearance, facing concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The Statement of Reasons detailed several issues, including a $4,412 store credit card debt charged off in October 1997, incurred when her son used the card. Additionally, the applicant filed for Chapter 7 bankruptcy in June 1995, listing unsecured claims of $16,149 and secured claims of $31,350.
Further concerns included a $5,700 IRS tax lien filed in March 1996, which was satisfied by August 2001, and its non-disclosure on her February 2001 security clearance application. The applicant also had a history of gambling-related financial problems, including losing approximately $20,000 from her IRA in casinos during the year prior to her bankruptcy filing.
Despite these issues, the judge granted the security clearance. The decision noted that the applicant had not incurred any financial delinquencies since her 1995 bankruptcy discharge and was currently living within her means, paying bills on time. Her gambling behavior had not caused recent financial problems, and she demonstrated efforts to manage her finances responsibly.
Why the Applicant Prevailed
- The applicant has not incurred any financial delinquencies since her bankruptcy discharge in 1995.
- The applicant's current financial situation shows she is living within her means and has been paying her bills on time.
- The applicant's gambling behavior has not resulted in recent financial problems, and she has made efforts to manage her finances responsibly.
Conditions Referenced
- DC 1raisedA History of Not Meeting Financial Obligations
- DC 3raisedInability or Unwillingness to Satisfy Debt
- DC 5raisedFinancial Problems That Are Linked to Gambling
- MC 1appliedThe Behavior Was Not Recent
- MC 3appliedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's Control (e.g. Loss of Employment)
- MC 6appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“The sole purpose of a security clearance decision is to decide if it is clearly consistent with the national interest to grant or continue a security clearance for an applicant.”
Procedural Posture
- SOR issuedJun 15, 2004
- Answer filedJul 28, 2004
- Hearing heldNov 2, 2005
- Decision dateFeb 21, 2006
Cite For
- Mitigation of Financial Concerns Under Guideline F Due to Responsible Financial Behavior
- Impact of Past Gambling Behavior on Security Clearance Decisions
- Consideration of Personal Conduct in Relation to Financial Issues Under Guideline E.