Summary
The applicant, a 31-year-old federal contractor, was denied a security clearance due to issues under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The applicant was terminated from a bank for unauthorized transactions on personal accounts, reflecting poor judgment and a violation of trust. Despite some positive character references, the applicant failed to mitigate ongoing financial issues and personal conduct concerns, leading to the denial of clearance.
Under Guideline E (Personal Conduct), Guideline F (Financial Considerations), and Guideline M (Use of Information Technology), the Statement of Reasons alleged the following: Applicant violated Bank A's policy and rules regarding conducting transactions when dealing with employees' personal accounts (2.a). Creditor, $1,077.00, charged off January 2000 (3.a). Insurance claim, $159.00, collection June 2002 (3.b). Credit Bureau, $266.00, collection April 2003 (3.c). Telephone $125.00, collection, August 2003 (3.d). Credit card, $2,539.00, charged off January 2002 (3.e). Credit card, $649.00, charged off January 2002 (3.f). Bank, $100.00 charged off, February 2002 (3.g). Credit card, $1,141.00, charged off May 2002 (3.h). Credit card, $1,125.00, charged off July 2002 (3.i). Creditor, $702.00, charged off, October 2002 (3.j). Collection Agency, $2,195.00, charged off November 2002 (3.k). Credit card, $1,784.00, judgment February 2003 (3.m). Financial Corporation, $1,086.00, judgment August 2003 (3.n). Misuse of Information Technology Systems (1.a).
The judge denied the clearance. The government raised disqualifying conditions E2.A5.1.2.4, E2.A5.1.2.5, E2.A6.1.2.1, E2.A6.1.2.2, E2.A6.1.2.3. The decision turned on the following: The applicant engaged in unauthorized transactions on personal accounts while employed at a bank, violating company policy; The applicant has numerous delinquent debts and failed to provide sufficient evidence of efforts to resolve them; The applicant's financial issues were exacerbated by the loss of her bank job due to misconduct, indicating a pattern of poor judgment.
Why the Applicant Was Denied
- The applicant engaged in unauthorized transactions on personal accounts while employed at a bank, violating company policy.
- The applicant has numerous delinquent debts and failed to provide sufficient evidence of efforts to resolve them.
- The applicant's financial issues were exacerbated by the loss of her bank job due to misconduct, indicating a pattern of poor judgment.
Conditions Referenced
- E2.A5.1.2.4appliedPersonal Conduct or Concealment of Information That Increases an Individual's Vulnerability to Coercion, Exploitation or Duress
- E2.A5.1.2.5appliedA Pattern of Dishonesty or Rule Violations, Including Violation of Any Written or Recorded Agreement Made Between the Individual and the Agency
- E2.A6.1.2.1appliedA History of Not Meeting Financial Obligations
- E2.A6.1.2.2appliedDeceptive or Illegal Financial Practices Such as Embezzlement, Employee Theft, Check Fraud, Income Tax Evasion, Expense Account Fraud, Filing Deceptive Loan Statements, and Other Intentional Financial Breaches of Trust
- E2.A6.1.2.3appliedInability or Unwillingness to Satisfy Debts
Key Rule Quoted
“The sole purpose of a security clearance determination 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 issuedAug 31, 2004
- Answer filedSep 29, 2004
- Hearing held—Applicant elected to have the case decided on the written record.
- Decision dateSep 28, 2005
Cite For
- Denial of Clearance Due to Unauthorized Use of Information Technology Under Guideline M
- Impact of Financial Irresponsibility on Security Clearance Eligibility Under Guideline F
- Evaluation of Personal Conduct and Its Implications for Trustworthiness Under Guideline E