Summary
The applicant, a 34-year-old heavy equipment operator, faced security clearance denial under Guidelines E and F due to wrongful use of a company credit card for personal expenses and failure to disclose delinquent debts. Despite mitigating factors related to his credit card abuse, the applicant's ongoing financial issues and inability to manage debts led to the denial of his security clearance.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Termination of Employment and Credit Card Abuse (2.a). Falsification (2.b). Applicant wrongfully used a company credit card for personal expenses (1.a). Applicant owes a $190.00 legal fee (1.b). Applicant has a delinquent credit card debt of $2,500.00 (1.c). Applicant owes approximately $6,295.00 to six creditors (1.d). Applicant has a delinquent personal loan of $1,000.00 (1.e). Applicant has a delinquent personal loan of $2,000.00 (1.f). Applicant has a delinquent personal loan of $3,000.00 (1.g). Applicant has a delinquent personal loan of $1,500.00 (1.h). Applicant has a delinquent personal loan of $1,200.00 (1.i). Applicant has a delinquent personal loan of $800.00 (1.j). Applicant has a delinquent personal loan of $500.00 (1.k).
The judge denied the clearance. The government raised disqualifying conditions E2.A6.1.2.1, E2.A6.1.2.2, E2.A6.1.2.3, E2.A5.1.2.1, E2.A5.1.2.2. The judge applied mitigating conditions E2.A6.1.3.1, E2.A6.1.3.2, E2.A6.1.3.3, E2.A6.1.3.4, E2.A6.1.3.6. The decision turned on the following: The applicant has approximately $6,300 in delinquent debts, which he has not mitigated; The applicant's financial situation shows he is living on the financial edge with no specific plan to resolve his debts.
Why the Applicant Was Denied
- The applicant has approximately $6,300 in delinquent debts, which he has not mitigated.
- The applicant's financial situation shows he is living on the financial edge with no specific plan to resolve his debts.
Conditions Referenced
- E2.A6.1.2.1appliedDC 1: History of Not Meeting Financial Obligations
- E2.A6.1.2.2appliedDC 2: Deceptive or Illegal Financial Practices
- E2.A6.1.2.3appliedDC 3: Inability or Unwillingness to Satisfy Debts
- E2.A5.1.2.1appliedDC 1: Reliable, Unfavorable Information
- E2.A5.1.2.2appliedDC 2: Deliberate Omission of Relevant and Material Facts
- E2.A6.1.3.1appliedMC 1: Behavior Not Recent
- E2.A6.1.3.2appliedMC 2: Isolated Incident
- E2.A6.1.3.3appliedMC 4: Financial Conditions Largely Beyond Control
- E2.A6.1.3.4appliedMC 5: Counseling Received for the Problem
- E2.A6.1.3.6appliedMC 6: Good-faith Effort to Repay Overdue Creditors
Key Rule Quoted
“"[N]o one has a 'right' to a security clearance."”
Procedural Posture
- SOR issuedJul 13, 2004
- Answer filedJul 16, 2004
- Hearing heldSep 9, 2004
- Decision dateNov 15, 2004
Cite For
- Denial of Security Clearance Due to Unresolved Financial Issues
- Impact of Personal Conduct on Security Clearance Eligibility
- Mitigating Factors Related to Isolated Incidents of Financial Misconduct