ISCR Case 17-01576

Case Headnote

ISCR Case No. 17-01576

deniedJan 24, 2019· Hon. Richard A. Cefola· hearing

Summary

A 58-year-old defense contractor employee was denied a security clearance due to concerns under Guideline B (Foreign Influence) and Guideline F (Financial Considerations), with financial issues being the primary factor. The applicant admitted to significant past-due debts totaling over $11,000. These included approximately $7,291 from a breach of contract with a former employer, about $3,672 in two past-due debts with the Department of Education, and roughly $1,747 owed to Creditor C. Additionally, the applicant admitted to past-due child support payments totaling about $7,747 and a past-due phone bill of about $696, which he stated was paid off.

Foreign influence concerns stemmed from the applicant's current spouse being a citizen and resident of the Philippines, to whom he provides about $600 in financial support every few months. His mother-in-law and father-in-law are also citizens and residents of the Philippines, and his spouse hopes to immigrate to the United States. The applicant also gave a one-time gift of about $500 to a female friend in the Philippines.

Despite the acknowledged foreign connections, the serious financial concerns were not mitigated. The applicant's financial problems were ongoing, with a history of delinquencies and insufficient evidence of resolution or control over his financial situation, leading to the denial of his security clearance.

Why the Applicant Was Denied

The applicant admitted to significant past-due debts, including child support and educational loans.
The applicant's financial problems were ongoing, with a history of delinquencies and insufficient evidence of resolution or control over his financial situation.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability to Satisfy Debts
AG ¶ 19(b)raisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations

Mitigating

AG ¶ 20(c)rejectedReceiving Financial CounselingWhile the applicant was receiving counseling, it did not demonstrate that his financial problems were under control.
AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsThe applicant did not provide sufficient evidence of a good-faith effort to resolve his debts.

Key Rule Quoted

“The protection of the national security is the paramount consideration.”

Procedural Posture

SOR issuedOct 5, 2017
Answer filedOct 31, 2017
Hearing heldMar 21, 2018
Decision dateJan 24, 2019

Cite For

Financial Difficulties as a Basis for Security Clearance Denial
Impact of Foreign Connections on Security Clearance Decisions
Importance of Demonstrating Resolution of Financial Issues in Clearance Cases

Editorial summary generated for research. Not legal advice; not a prediction. Verify against the full decision before relying on any quoted language.

¶	Allegation	Finding	Relationship	Country	Response	Disqualifying (¶7)	Mitigating applied (¶8)	Mitigation
2.a	Applicant’s current spouse is a citizen and resident of the Philippines.	For Applicant	Spouse Dual or Foreign Citizen Immediate Family	Philippines	Admitted	—	—	—
2.b	Applicant provides financial support of about $600 every few months to his spouse.	For Applicant	Financial Support to Foreign Relative Immediate Family	Philippines	Admitted	—	—	—
2.c	Applicant’s mother-in-law and father-in-law are citizens and residents of the Philippines.	For Applicant	Extended Family in Foreign Country Extended Family	Philippines	Admitted	—	—	—
2.d	Applicant’s spouse hopes to immigrate to the United States.	For Applicant	Unspecified Foreign Relationship Immediate Family	Philippines	Admitted	—	—	—
2.e	Applicant gave a one-time gift of about $500 to a female friend in the Philippines.	For Applicant	Friend in Foreign Country Friend	Philippines	Admitted	—	—	—

Allegation

Finding

Relationship

Country

Response

Disqualifying (¶7)

Mitigating applied (¶8)

Mitigation

2.a

Applicant’s current spouse is a citizen and resident of the Philippines.

For Applicant

Spouse Dual or Foreign Citizen

Immediate Family

Philippines

Admitted

—

2.b

Applicant provides financial support of about $600 every few months to his spouse.

For Applicant

Financial Support to Foreign Relative

Immediate Family

Philippines

Admitted

—

2.c

Applicant’s mother-in-law and father-in-law are citizens and residents of the Philippines.

For Applicant

Extended Family in Foreign Country

Extended Family

Philippines

Admitted

—

2.d

Applicant’s spouse hopes to immigrate to the United States.

For Applicant

Unspecified Foreign Relationship

Immediate Family

Philippines

Admitted

—

2.e

Applicant gave a one-time gift of about $500 to a female friend in the Philippines.

For Applicant

Friend in Foreign Country

Friend

Philippines

Admitted

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant admits that he has a past-due debt in the amount of about $7,291, as the result of a breach of contract with a former employer. $7,291	For Applicant	Unspecified Financial	Admitted	—	—	—
1.b	Applicant admits that he has two past-due debts with the Department of Education totaling about $3,672. $3,672	Against Applicant	Student Loan Debt	Admitted	—	—	—
1.c	Applicant admits that he has a past-due debt in the amount of about $1,747 to Creditor C. $1,747	For Applicant	Unspecified Financial	Admitted	—	—	—
1.d	Applicant admits that he had a past-due debt with Creditor D in the amount of about $696, but avers that this phone bill account was paid off. $696	Against Applicant	Utility or Phone Debt	Admitted	—	—	—
1.e	Applicant admits that he had past-due child support payments totaling about $7,747. $7,747	Against Applicant	Child Support Debt	Admitted	—	—	—
1.f	specific text not stated in this decision	Against Applicant	Unspecified Financial	Unknown	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant admits that he has a past-due debt in the amount of about $7,291, as the result of a breach of contract with a former employer.

$7,291

For Applicant

Unspecified Financial

Admitted

—

1.b

Applicant admits that he has two past-due debts with the Department of Education totaling about $3,672.

$3,672

Against Applicant

Student Loan Debt

Admitted

—

1.c

Applicant admits that he has a past-due debt in the amount of about $1,747 to Creditor C.

$1,747

For Applicant

Unspecified Financial

Admitted

—

1.d

Applicant admits that he had a past-due debt with Creditor D in the amount of about $696, but avers that this phone bill account was paid off.

$696

Against Applicant

Utility or Phone Debt

Admitted

—

1.e

Applicant admits that he had past-due child support payments totaling about $7,747.

$7,747

Against Applicant

Child Support Debt

Admitted

—

1.f

specific text not stated in this decision

Against Applicant

Unspecified Financial

Unknown

—

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Case Profile

Summary

Why the Applicant Was Denied

Conditions Referenced

Key Rule Quoted

Procedural Posture

Cite For

Full decision

DEFENSE OFFICE OF HEARINGS AND APPEALS

HEARING

APPEARANCES

STATEMENT OF CASE

FINDINGS OF FACT

POLICIES

ANALYSIS

WHOLE PERSON CONCEPT

FORMAL FINDINGS

CONCLUSION