Summary
The applicant, a 48-year-old employee of a defense contractor, faced security concerns under Guideline E (Financial Considerations) and Guideline F (Personal Conduct) due to a history of financial irresponsibility and two instances of theft from her employer. Despite having worked for over four years without incident, the applicant failed to demonstrate sufficient rehabilitation or a good-faith effort to resolve her debts, leading to the denial of her eligibility for a sensitive position.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant used her position of trust to wrongfully take funds from her employer, resulting in her termination (2.a). medical bills totaling $1,500 (1.b). medical bills totaling $2,000 (1.c). medical bills totaling $1,200 (1.d). medical bills totaling $1,000 (1.e). bad check totaling $500 (1.f). credit card debt totaling $2,000 (1.h). auto loan paid in full (1.l). embezzlement totaling $3,000 (1.n). embezzlement totaling $200 (1.o).
The judge denied the clearance. The government raised disqualifying conditions DC 1, DC 2, DC 3. The decision turned on the following: The applicant has a long history of financial irresponsibility, including delinquent debts totaling over $7,000; The applicant admitted to two instances of theft from her employer, demonstrating questionable judgment and unreliability; The applicant did not seek credit counseling or make a good-faith effort to resolve her financial obligations.
Why the Applicant Was Denied
- The applicant has a long history of financial irresponsibility, including delinquent debts totaling over $7,000.
- The applicant admitted to two instances of theft from her employer, demonstrating questionable judgment and unreliability.
- The applicant did not seek credit counseling or make a good-faith effort to resolve her financial obligations.
Conditions Referenced
- DC 1appliedHistory of Not Meeting Financial Obligations
- DC 2appliedDeceptive or Illegal Financial Practices
- DC 3appliedInability or Unwillingness to Satisfy Debts
Key Rule Quoted
“"The adjudicative process is an examination of a sufficient period of a person's life to make an affirmative determination that the person is eligible for a security clearance."”
Procedural Posture
- SOR issuedMay 27, 2004
- Answer filedJun 25, 2004
- Hearing heldNov 18, 2004
- Decision dateMar 15, 2005
Cite For
- Denial Based on Long-term Financial Irresponsibility Under Guideline E
- Impact of Personal Conduct on Trustworthiness Under Guideline F
- Failure to Demonstrate Rehabilitation or Good-faith Efforts to Resolve Debts