ISCR Case 17-01013.h1

Case Headnote

ISCR Case No. 17-01013.h1

grantedOct 15, 2018· Hon. Juan J. Rivera· hearing

Summary

A 57-year-old federal contractor and retired Air Force veteran was granted eligibility for access to classified information despite concerns under Guideline B (Foreign Influence) and Guideline F (Financial Considerations). The Statement of Reasons (SOR) cited the applicant's brother-in-law and wife as resident-citizens of Tunisia, with other family members also residing there. The applicant also disclosed future plans to purchase real estate in Tunisia.

Financial concerns included a failure to timely file federal income tax returns for tax years 2008 through 2016, a debt of $1,222 to a telecommunications provider, and a $2,000 late payment on a $162,000 mortgage.

The judge determined that the applicant's financial problems were largely due to circumstances beyond his control, such as periods of unemployment and a divorce. The applicant demonstrated financial responsibility since 2013, including timely filing all tax returns and paying back taxes. Most financial concerns were resolved before the SOR was issued, leading to the favorable outcome.

Why the Applicant Prevailed

Applicant resolved most financial concerns before the issuance of the SOR.
Financial problems were largely due to circumstances beyond his control, including periods of unemployment and a divorce.
Applicant has been financially responsible since 2013, timely filing tax returns and paying all back taxes.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability to Satisfy Debts
AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
AG ¶ 19(f)raisedFailure to File or Fraudulently Filing Annual Federal, State, or Local Income Tax Returns or Failure to Pay Income Tax as Required

Mitigating

AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
AG ¶ 20(d)appliedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
AG ¶ 20(g)appliedThe Individual Has Made Arrangements with the Appropriate Tax Authority to File or Pay the Amount Owed and Is in Compliance with Those Arrangements

Key Rule Quoted

“Eligibility for access to classified information may be granted "only upon a finding that it is clearly consistent with the national interest to do so."”
— Exec. Or. 10865, § 2.

Procedural Posture

SOR issuedJun 16, 2017
Answer filedSep 13, 2017
Hearing heldJun 27, 2018via video teleconference
Decision dateOct 15, 2018

Cite For

Mitigation of Financial Issues Under Guideline F Due to Circumstances Beyond Control
Foreign Influence Concerns Mitigated by Limited Contact with Foreign Relatives
Responsible Financial Behavior Demonstrated Through Timely Tax Filings and Debt Resolution

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 has a brother-in-law who is a resident-citizen of Tunisia.	For Applicant	In Law in Foreign Country Immediate Family	Tunisia HEIGHTENED RISK	Admitted	(a) contact with a foreign family member/associate/friend creating a heightened risk of exploitation (c) failure to report or disclose association with a foreign person/group/government (f) substantial foreign business, financial, or property interests	(b) deep/longstanding U.S. loyalties; conflict resolves in favor of the U.S.	Credited Deep U.S. Ties
2.b	Applicant's wife is a Tunisian citizen, and her family members are resident-citizens of Tunisia.	For Applicant	Spouse Dual or Foreign Citizen Immediate Family	Tunisia HEIGHTENED RISK	Admitted	(a) contact with a foreign family member/associate/friend creating a heightened risk of exploitation (c) failure to report or disclose association with a foreign person/group/government (f) substantial foreign business, financial, or property interests	(b) deep/longstanding U.S. loyalties; conflict resolves in favor of the U.S.	Credited Deep U.S. Ties
2.c	specific text not stated in this decision	For Applicant	Unspecified Foreign Relationship Other	—	Denied	—	—	—
2.d	Applicant disclosed plans to purchase real estate in Tunisia in the future.	For Applicant	Foreign Real Estate Financial or Property Interest	Tunisia HEIGHTENED RISK	Admitted	(a) contact with a foreign family member/associate/friend creating a heightened risk of exploitation (c) failure to report or disclose association with a foreign person/group/government (f) substantial foreign business, financial, or property interests	(b) deep/longstanding U.S. loyalties; conflict resolves in favor of the U.S.	Credited Deep U.S. Ties

Allegation

Finding

Relationship

Country

Response

Disqualifying (¶7)

Mitigating applied (¶8)

Mitigation

2.a

Applicant has a brother-in-law who is a resident-citizen of Tunisia.

For Applicant

In Law in Foreign Country

Immediate Family

Tunisia

HEIGHTENED RISK

Admitted

(a) contact with a foreign family member/associate/friend creating a heightened risk of exploitation

(c) failure to report or disclose association with a foreign person/group/government

(f) substantial foreign business, financial, or property interests

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

Credited

Deep U.S. Ties

2.b

Applicant's wife is a Tunisian citizen, and her family members are resident-citizens of Tunisia.

For Applicant

Spouse Dual or Foreign Citizen

Immediate Family

Tunisia

HEIGHTENED RISK

Admitted

(a) contact with a foreign family member/associate/friend creating a heightened risk of exploitation

(c) failure to report or disclose association with a foreign person/group/government

(f) substantial foreign business, financial, or property interests

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

Credited

Deep U.S. Ties

2.c

specific text not stated in this decision

For Applicant

Unspecified Foreign Relationship

Other

—

Denied

—

2.d

Applicant disclosed plans to purchase real estate in Tunisia in the future.

For Applicant

Foreign Real Estate

Financial or Property Interest

Tunisia

HEIGHTENED RISK

Admitted

(a) contact with a foreign family member/associate/friend creating a heightened risk of exploitation

(c) failure to report or disclose association with a foreign person/group/government

(f) substantial foreign business, financial, or property interests

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

Credited

Deep U.S. Ties

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant failed to timely file federal income tax returns for tax years 2008 through 2016.	For Applicant	Tax Filing Failure	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations (f) failure to file / fraudulent filing of tax returns or unpaid tax	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts (g) arrangements made with the tax authority; in compliance	Documented Debt Paid in Full Documented Financial Counseling Claimed Other
1.b	SOR ¶ 1.b alleged a $1,222 debt to a telecommunications provider. $1,222	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.c	SOR ¶ 1.c alleged Applicant was $2,000 late paying his $162,000 mortgage.	For Applicant	Mortgage or Home Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Claimed Other

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant failed to timely file federal income tax returns for tax years 2008 through 2016.

For Applicant

Tax Filing Failure

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(f) failure to file / fraudulent filing of tax returns or unpaid tax

(b) conditions largely beyond the person’s control; acted responsibly

(d) good-faith effort to repay or otherwise resolve debts

(g) arrangements made with the tax authority; in compliance

Documented

Debt Paid in Full

Documented

Financial Counseling

Claimed

Other

1.b

SOR ¶ 1.b alleged a $1,222 debt to a telecommunications provider.

$1,222

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(d) good-faith effort to repay or otherwise resolve debts

Documented

Debt Paid in Full

1.c

SOR ¶ 1.c alleged Applicant was $2,000 late paying his $162,000 mortgage.

For Applicant

Mortgage or Home Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

(d) good-faith effort to repay or otherwise resolve debts

Claimed

Other

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Case Profile

Summary

Why the Applicant Prevailed

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