ISCR Case 21-02921

Case Headnote

ISCR Case No. 21-02921

deniedAug 29, 2023· Hon. Charles C. Hale· hearing

Summary

A 37-year-old U.S. citizen and contractor was denied a security clearance due to unmitigated concerns under Guideline L (Outside Activities), despite mitigating concerns under Guideline B (Foreign Influence). The applicant admitted to the allegations regarding outside activities but failed to provide sufficient evidence to resolve the associated security risks.

Specifically, the applicant worked for a U.S. company from October 2018 to at least April 2020 while also receiving income from a local Korean corporation that sponsored his visa to reside in South Korea. The judge determined that these contemporaneous positions could create a conflict of interest with his security responsibilities, and the applicant did not demonstrate otherwise.

While foreign influence concerns were ultimately mitigated, the applicant's connections to South Korea were noted. These connections included two friends who are South Korean citizens and residents, one of whom served in the South Korean military as a Librarian from approximately January 2014 to 2018, another who served as a Katusa in the Korean Augmentation to the U.S. Army, and a third who served in the South Korean military until about May 2016. The applicant also provides approximately $600 in yearly financial support to a South Korean friend and maintains two bank accounts in South Korea with approximate values of $12,835 and $620. The judge emphasized national security and the applicant's South Korean connections in the denial.

Why the Applicant Was Denied

The applicant failed to mitigate security concerns related to outside activities under Guideline L.
The applicant did not provide evidence to show that his outside employment did not pose a conflict with his security responsibilities.
The applicant's connections to South Korea raised concerns about potential foreign influence.

Conditions Referenced

Disqualifying

AG ¶ 37(a)(2)raisedInvolvement with Foreign Nationals
AG ¶ 37(a)(3)raisedEmployment with Foreign Entities

Mitigating

AG ¶ 38(a)rejectedEvaluation of Outside EmploymentThe applicant did not request an evaluation of his outside employment.
AG ¶ 38(b)rejectedTermination of Conflicting EmploymentThe applicant did not terminate the employment upon being notified of a conflict.
AG ¶ 8(a)appliedNature of Relationships with Foreign Persons
AG ¶ 8(b)appliedMinimal Conflict of Interest
AG ¶ 8(c)appliedCasual Contact with Foreign Citizens
AG ¶ 8(f)appliedRoutine Nature of Foreign Interests

Key Rule Quoted

“Eligibility for access to classified information is predicated upon the applicant’s meeting the criteria contained in the AG.”
— Exec. Or. 10865, Safeguarding Classified Information within Industry § 2 (Feb. 20, 1960), as amended.

Procedural Posture

SOR issuedApr 28, 2022
Answer filedMay 18, 2022
Hearing held—Applicant requested a decision on the record without a hearing.
Decision dateAug 29, 2023

Cite For

Denial of Clearance Due to Failure to Mitigate Outside Activities Under Guideline L
Mitigation of Foreign Influence Concerns Under Guideline B
Importance of National Security in Clearance Decisions

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	Your two friends are citizens and residents of South Korea.	For Applicant	Friend in Foreign Country Friend	South Korea HEIGHTENED RISK	Admitted	—	(a) relationships such that a conflict between foreign and U.S. interests is unlikely (b) deep/longstanding U.S. loyalties; conflict resolves in favor of the U.S.	—
2.b	Your friend, a citizen of South Korea, served as a Librarian in the South Korea military from about January 2014 to about 2018.	For Applicant	Friend in Foreign Country Friend	South Korea HEIGHTENED RISK	Admitted	—	(a) relationships such that a conflict between foreign and U.S. interests is unlikely (b) deep/longstanding U.S. loyalties; conflict resolves in favor of the U.S.	—
2.c	Your friend, a citizen of South Korea, served as a Katusa in the Korean Augmentation to the US Army.	For Applicant	Friend in Foreign Country Friend	South Korea HEIGHTENED RISK	Admitted	—	(a) relationships such that a conflict between foreign and U.S. interests is unlikely (b) deep/longstanding U.S. loyalties; conflict resolves in favor of the U.S.	—
2.d	Your friend, a citizen of South Korea, served in the South Korea military until about May 2016.	For Applicant	Friend in Foreign Country Friend	South Korea HEIGHTENED RISK	Admitted	—	(a) relationships such that a conflict between foreign and U.S. interests is unlikely (b) deep/longstanding U.S. loyalties; conflict resolves in favor of the U.S.	—
2.e	You provide approximately $600 yearly financial support to your friend who is a citizen of South Korea.	For Applicant	Financial Support to Foreign Relative Friend	South Korea HEIGHTENED RISK	Admitted	—	(a) relationships such that a conflict between foreign and U.S. interests is unlikely (b) deep/longstanding U.S. loyalties; conflict resolves in favor of the U.S.	—
2.f	You maintain a bank account in South Korea with an approximate value of $12,835.	For Applicant	Foreign Bank Account or Investment Financial or Property Interest	South Korea HEIGHTENED RISK	Admitted	—	(a) relationships such that a conflict between foreign and U.S. interests is unlikely (b) deep/longstanding U.S. loyalties; conflict resolves in favor of the U.S.	—
2.g	You maintain a bank account in South Korea with an approximate value of $620.	For Applicant	Foreign Bank Account or Investment Financial or Property Interest	South Korea HEIGHTENED RISK	Admitted	—	(a) relationships such that a conflict between foreign and U.S. interests is unlikely (b) deep/longstanding U.S. loyalties; conflict resolves in favor of the U.S.	—
2.h	specific text not stated in this decision	For Applicant	Unspecified Foreign Relationship Other	—	Unknown	—	—	—

Allegation

Finding

Relationship

Country

Response

Disqualifying (¶7)

Mitigating applied (¶8)

Mitigation

2.a

Your two friends are citizens and residents of South Korea.

For Applicant

Friend in Foreign Country

Friend

South Korea

HEIGHTENED RISK

Admitted

—

(a) relationships such that a conflict between foreign and U.S. interests is unlikely

(b) deep/longstanding U.S. loyalties; conflict resolves in favor of the U.S.

—

2.b

Your friend, a citizen of South Korea, served as a Librarian in the South Korea military from about January 2014 to about 2018.

For Applicant

Friend in Foreign Country

Friend

South Korea

HEIGHTENED RISK

Admitted

—

(a) relationships such that a conflict between foreign and U.S. interests is unlikely

(b) deep/longstanding U.S. loyalties; conflict resolves in favor of the U.S.

—

2.c

Your friend, a citizen of South Korea, served as a Katusa in the Korean Augmentation to the US Army.

For Applicant

Friend in Foreign Country

Friend

South Korea

HEIGHTENED RISK

Admitted

—

(a) relationships such that a conflict between foreign and U.S. interests is unlikely

(b) deep/longstanding U.S. loyalties; conflict resolves in favor of the U.S.

—

2.d

Your friend, a citizen of South Korea, served in the South Korea military until about May 2016.

For Applicant

Friend in Foreign Country

Friend

South Korea

HEIGHTENED RISK

Admitted

—

(a) relationships such that a conflict between foreign and U.S. interests is unlikely

(b) deep/longstanding U.S. loyalties; conflict resolves in favor of the U.S.

—

2.e

You provide approximately $600 yearly financial support to your friend who is a citizen of South Korea.

For Applicant

Financial Support to Foreign Relative

Friend

South Korea

HEIGHTENED RISK

Admitted

—

(a) relationships such that a conflict between foreign and U.S. interests is unlikely

(b) deep/longstanding U.S. loyalties; conflict resolves in favor of the U.S.

—

2.f

You maintain a bank account in South Korea with an approximate value of $12,835.

For Applicant

Foreign Bank Account or Investment

Financial or Property Interest

South Korea

HEIGHTENED RISK

Admitted

—

(a) relationships such that a conflict between foreign and U.S. interests is unlikely

(b) deep/longstanding U.S. loyalties; conflict resolves in favor of the U.S.

—

2.g

You maintain a bank account in South Korea with an approximate value of $620.

For Applicant

Foreign Bank Account or Investment

Financial or Property Interest

South Korea

HEIGHTENED RISK

Admitted

—

(a) relationships such that a conflict between foreign and U.S. interests is unlikely

(b) deep/longstanding U.S. loyalties; conflict resolves in favor of the U.S.

—

2.h

specific text not stated in this decision

For Applicant

Unspecified Foreign Relationship

Other

—

Unknown

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶37)	Mitigating applied (¶38)	Mitigation
1.a	Applicant worked for [a company (Co2)] from about October 2018 until at least April 2020. You also realize income through [Korean company], which is a local Korean corporation that sponsors you with a visa to reside in South Korea. These contemporaneous positions with a U.S. company and a local Korean company could pose a conflict of interest with your security responsibilities and could create an	Against Applicant	Service with Foreign Entity or National	Admitted	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶37)

Mitigating applied (¶38)

Mitigation

1.a

Applicant worked for [a company (Co2)] from about October 2018 until at least April 2020. You also realize income through [Korean company], which is a local Korean corporation that sponsors you with a visa to reside in South Korea. These contemporaneous positions with a U.S. company and a local Korean company could pose a conflict of interest with your security responsibilities and could create an

Against Applicant

Service with Foreign Entity or National

Admitted

—

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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