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Summary

The applicant, a 42-year-old employed as a computer graphic artist, faced security concerns under Guidelines E, F, and J due to unresolved financial debts and failure to file tax returns from 2001 to 2004. Despite having filed her back taxes, the applicant did not demonstrate a sufficient plan to address her financial issues, leading to the denial of her security clearance.

Under Guideline E (Personal Conduct), Guideline F (Financial Considerations), and Guideline J (Criminal Conduct), the Statement of Reasons alleged the following: Applicant denied a debt to Creditor #1, a utility, for $88 which was turned over for collection. The 2006 credit report showed a zero balance (1.a). Applicant denied a debt to Creditor #2 for $338 for a debt turned over for collection; however her Personal Financial Statement in February 2005 showed payments to that creditor. She resolved this debt in May 2006 (1.b). Applicant denied a debt to Creditor #3 for $690 for a debt turned over for collection which is reflected on credit reports from 2006 (1.c). Applicant denied a debt to Creditor #4 for $1,329 for a debt turned over for collection. However, she admitted a debt of $922 to Creditor #4 for a medical service charge for emergency services provided to her daughter. The debt is reflected in credit reports (1.d). Applicant denied a debt to Creditor #5 for $40 for a check returned for insufficient funds. She claimed to have no knowledge of this debt in February 2005. The debt is listed in a January 2006 credit report, but not in May 2006. She resolved this debit in April 2006 (1.e). Applicant admitted a debt to Creditor #6, for $1,382 for credit card purchases (1.f). Applicant admitted a debt to Creditor #6, for $2,388 for credit card purchases (1.g). Applicant denied a debt to Creditor #7 for $515; however, the debt is reported on 2006 credit reports (1.h). Applicant admitted a debt to Creditor #8 for $18,344 for a debt charged off which is listed on credit reports (1.i). Applicant admitted a debt to Creditor #9 for $11,924 for a debt charged off for a vehicle which she voluntarily returned when she knew she could not afford the $600 monthly payments; she returned the car in October 1998. The debt remains on her credit report (1.j). Applicant denied a debt to Creditor #3 for $178 for a debt turned over for collection; however, the debt was reported on a 2004 credit report (1.k). The applicant failed to file federal income tax returns for the years 2001 through 2004 (2.a).

The judge denied the clearance. The government raised disqualifying conditions F.3, J.1, E.2. The judge applied mitigating conditions F.3, J.6, E.5. The decision turned on the following: The applicant failed to resolve all her debts, leaving several large debts unpaid; She did not provide a clear plan for addressing her financial obligations or evidence of financial counseling; The applicant's financial problems raised security concerns about her reliability and trustworthiness.

Why the Applicant Was Denied

• The applicant failed to resolve all her debts, leaving several large debts unpaid.
• She did not provide a clear plan for addressing her financial obligations or evidence of financial counseling.
• The applicant's financial problems raised security concerns about her reliability and trustworthiness.

Conditions Referenced

Key Rule Quoted

“The responsibility for producing evidence initially falls on the Government to demonstrate that it is not clearly consistent with the national interest to grant or continue Applicant's access to classified information.”

Procedural Posture

• SOR issuedMar 17, 2006
• Answer filedMay 7, 2006Notarized response from applicant.
• Hearing held—
• Decision dateDec 27, 2006

Cite For

• Insufficient Evidence of Financial Responsibility Under Guideline F
• Mitigation of Criminal Conduct Under Guideline J Due to Corrective Action Taken
• Personal Conduct Concerns Mitigated by Filing Tax Returns