Summary
A 31-year-old federal contractor employee was denied a security clearance due to concerns under Guideline F (Financial Considerations) and Guideline J (Criminal Conduct). The applicant had a 1997 felony conviction for credit card theft and multiple unpaid debts. The denial was based on the applicant's failure to make full restitution for the felony and a history of financial irresponsibility.
Specifically, the applicant had nine unpaid accounts totaling over $3,000 in collection or past-due status as of August 26, 2003. Restitution payments for the felony conviction were sporadic, with approximately twelve $50 payments made over 22 months, and a four-year period with no payments. The applicant's financial situation was described as living paycheck-to-paycheck, with minimal funds in checking and savings accounts and no financial assets. Although some delinquencies were resolved by February 2004, the applicant failed to demonstrate a change in financial habits.
The felony conviction stemmed from a credit card scheme at her workplace, where she abused her position to obtain over $1,000 in goods using others' credit cards. In 1997, she pleaded guilty to credit card theft, receiving a two-year suspended sentence (except for 30 days) and two years probation. The failure to complete restitution was seen as evidence of a pattern of illegal behavior, raising doubts about her judgment and trustworthiness.
Why the applicant was denied
- The applicant failed to make full restitution for her felony conviction, which was a condition of her sentence.
- The applicant demonstrated a history of not meeting financial obligations, with nine delinquent accounts totaling over $3,000.
- The applicant's financial irresponsibility was evidenced by sporadic restitution payments and living paycheck-to-paycheck.
Conditions referenced
- DC 1appliedAllegations or Admissions of Criminal Conduct, Regardless of Whether the Person Was Formally Charged.
- DC 2appliedA Single Serious Crime or Multiple Lesser Offenses.
- MC 6rejectedThere Is Clear Evidence of Successful Rehabilitation.The applicant has yet to make full restitution, a requirement of her sentence.
Key rule quoted
“"The only 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 issuedNov 7, 2003
- Answer filedFeb 4, 2004
- Hearing heldJul 30, 2004
- Decision dateNov 2, 2004
Cite for
- Failure to Mitigate Financial Obligations Under Guideline F
- Impact of Felony Convictions on Security Clearance Under Guideline J
- Criteria for Assessing Successful Rehabilitation in Security Clearance Cases.