Summary
A 54-year-old defense contractor employee was denied a security clearance due to concerns under Guideline D (Sexual Behavior) and Guideline F (Financial Considerations). The denial stemmed from a history of repeated sexual harassment incidents and ongoing financial instability.
Regarding financial concerns, the applicant filed for Chapter 13 bankruptcy on August 22, 1994, which was dismissed, followed by a Chapter 11 filing on October 3, 1994. This financial distress began in 1992 when his wife was unemployed for eighteen months. Under the Chapter 11 plan, a 1992 IRS debt of $5,793 was to be paid at $100 monthly for five years, with $238.56 paid to date. Eight unsecured creditors with claims totaling $21,800 were to receive quarterly payments over 60 months, with $2,000.93 paid. While the applicant was making consistent payments and reporting to the court, his income had significantly decreased from approximately $100,000 combined in the early 1990s to a current combined income of about $40,000, with the applicant earning $7.25 per hour.
The judge determined that the applicant's repeated sexual harassment, which led to his termination, and his failure to fully resolve his financial issues or demonstrate a stable financial situation, outweighed any presented mitigating factors. Consequently, the security clearance was denied.
Why the Applicant Was Denied
- The applicant engaged in repeated sexual harassment, which was substantiated by company investigations and led to his termination.
- The applicant failed to demonstrate that his financial issues were resolved or that he had a stable financial situation.
Conditions Referenced
- D.4raisedSexual Behavior of a Public Nature And/or That Which Reflects Lack of Discretion or Judgment.
- F.1raisedA History of Not Meeting Financial Obligations.
- F.3appliedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's Control.
- F.6appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts.
Key Rule Quoted
“Sexual behavior is a security concern if it involves a criminal offense, indicates a personality or emotional disorder, subjects the individual to undue influence or coercion, or reflects lack of judgment or discretion.”
Procedural Posture
- SOR issuedJun 10, 1996
- Answer filedJul 24, 1996
- Hearing heldOct 1, 1996
- Decision dateDec 30, 1996
Cite For
- Denial of Security Clearance Based on Substantiated Sexual Harassment Allegations
- Impact of Financial Instability on Security Clearance Eligibility
- Mitigating Factors Related to Financial Difficulties and Efforts to Resolve Debts