Summary
The applicant, a 56-year-old technical staff assistant, faced security concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations) due to significant delinquent debts totaling over $60,000, primarily linked to gambling. Despite making some payments on her debts, she failed to seek financial counseling or demonstrate a comprehensive plan to address her financial issues, leading to the denial of her security clearance.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant acknowledged her gambling problem which has persisted from 1994 through 2005. Initially, she did not tell her employer about her gambling problem as she feared termination. She has since told her employer about this issue. Her supervisor suggested Applicant attend GA, but she did not seek help from a support group (2.a). Applicant has not sought any financial counseling. Also, she does not have a budget as she found she could not stick to it. She hopes to get part-time work to supplement her income (2.b). Debt 1.a. to Creditor #1 for $28,870 to a credit card company; the account was closed in March 2004 when she failed to make timely payments (1.a). Debt 1.b. to Creditor #2 for $14,175 which is a debt for her using the card to get cash for bills and for gambling (1.b). Debt 1.c. to Creditor #3 for $8,022 for an account delinquent since November 2003 (1.c). Debt 1.d. to Creditor #4 for $2,722 for a credit card account delinquent since December 2004 (1.d). Debt 1.e. to Creditor #5 for $120 for a returned check charged off as a bad debt in January 2005 (1.e). Debt 1.f. to Creditor #5 for $150 for a returned check charged off as a bad debt in February 2005 (1.f). Debt 1.g. to Creditor #6 for $10,408 for an credit card account placed for collection in February 2005 (1.g).
The judge denied the clearance. The government raised disqualifying conditions E2.A5.1.2.4, E2.A6.1.2.1, E2.A6.1.2.3, E2.A6.1.2.5. The decision turned on the following: Applicant has not sought financial counseling to address her debts; Applicant continues to gamble intermittently, indicating a lack of control over her finances; Applicant failed to demonstrate a sufficient good-faith effort to resolve her overall indebtedness.
Why the Applicant Was Denied
- Applicant has not sought financial counseling to address her debts.
- Applicant continues to gamble intermittently, indicating a lack of control over her finances.
- Applicant failed to demonstrate a sufficient good-faith effort to resolve her overall indebtedness.
Conditions Referenced
- E2.A5.1.2.4appliedPersonal Conduct or Concealment of Information That Increases an Individual's Vulnerability to Coercion, Exploitation or Duress
- E2.A6.1.2.1appliedA History of Not Meeting Financial Obligations
- E2.A6.1.2.3appliedInability or Unwillingness to Satisfy Debts
- E2.A6.1.2.5appliedFinancial Problems That Are Linked to Gambling, Drug Abuse, Alcoholism, or Other Issues of Security Concern
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 issuedJul 12, 2005
- Answer filedSep 12, 2005
- Hearing heldNov 29, 2005
- Decision dateJun 21, 2006
Cite For
- Failure to Mitigate Financial Concerns Under Guideline F
- Impact of Gambling on Financial Responsibility
- Lack of Good-faith Effort in Resolving Debts