ISCR Case 12-05894.h1

Case Headnote

ISCR Case No. 12-05894.h1

deniedMar 6, 2017· Hon. Shari Dam· hearing

Summary

A 57-year-old male immigrant from Iraq was denied a security clearance due to concerns under Guidelines B (Foreign Influence), E (Personal Conduct), and F (Financial Considerations). The applicant had a history of delinquent debts, including a 2010 bankruptcy, a 2010 judgment for unpaid sales tax legal fees, and an outstanding credit card debt from 1989. While one credit card debt was resolved in October 2015, the judge found that the applicant failed to mitigate the overall financial concerns.

Additionally, the applicant faced significant personal conduct issues, primarily stemming from a failure to disclose pertinent information on his security clearance application. This included a 1998-1999 arrest and charge for making false statements to a federal loan program, a 1990 domestic violence conviction, and a 2000 arrest for operating a vehicle while impaired. He also failed to report civil judgments from 2010, a 2008 termination from employment for leaving Iraq without authorization, and a 2005 termination as an interpreter for intimidating an immigrant. The applicant attributed these omissions to rushing the application, embarrassment, or believing the information was irrelevant as no business materialized.

Foreign influence concerns arose from the applicant's undisclosed travel to Iraq in 2010 with his brother to negotiate a sugar deal, and his failure to disclose research into shipping vehicles to Iraq or attending a U.S. meeting about providing industrial equipment to an Iraqi company. The judge concluded that the applicant failed to mitigate both financial and personal conduct concerns, leading to the denial of his security clearance.

Why the Applicant Was Denied

The applicant failed to mitigate financial security concerns due to a history of delinquent debts and unpaid sales taxes.
The applicant did not disclose significant personal conduct issues in his security clearance application, including a felony conviction and multiple instances of failing to report required information.

Conditions Referenced

Disqualifying

F.1.araisedInability or Unwillingness to Satisfy Debts
F.1.craisedA History of Not Meeting Financial Obligations
E.2.araisedPersonal Conduct Security Concerns Due to Failure to Disclose Information

Key Rule Quoted

“Failure or inability to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness and ability to protect classified information.”

Procedural Posture

SOR issuedSep 12, 2016
Answer filedSep 28, 2016
Hearing heldNov 17, 2016
Decision dateMar 6, 2017

Cite For

Failure to Mitigate Financial Concerns Under Guideline F
Failure to Disclose Significant Personal Conduct Issues Under Guideline E
Impact of Foreign Influence Concerns Under Guideline B on Security Clearance Eligibility

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
3.a	The SOR alleged that Applicant considered, researched, and/or supported his brother and his business in obtaining or attempting to obtain business contacts or contracts with Iraq and Iraqi businesses.	For Applicant	Sibling in Foreign Country Immediate Family	Iraq HEIGHTENED RISK	Denied	—	—	—

Allegation

Finding

Relationship

Country

Response

Disqualifying (¶7)

Mitigating applied (¶8)

Mitigation

3.a

The SOR alleged that Applicant considered, researched, and/or supported his brother and his business in obtaining or attempting to obtain business contacts or contracts with Iraq and Iraqi businesses.

For Applicant

Sibling in Foreign Country

Immediate Family

Iraq

HEIGHTENED RISK

Denied

—

¶	Allegation	Finding	Conduct	Concealed Issue	Response	Disqualifying (¶16)	Mitigating applied (¶17)	Mitigation
2.a	The SOR alleged that Applicant’s arrest and charge for making false statements to a federal loan program in 1998 to 1999, and his failure to report income, as alleged in ¶ 1.h through ¶ 1.j, raised personal conduct security concerns.	Against Applicant	Omission or Failure to DiscloseFOUND DELIBERATE	Criminal Conduct	Denied	—	—	—
2.b	Applicant did not report the delinquent debts alleged in SOR ¶¶ 1.d, 1.e, and 1.f. He reported the 2010 bankruptcy. Applicant said the SCA was too long and he was in a hurry to finish it. He thought the SCA went to his potential employer, who did not care about those details. He acknowledged that his financial issues were embarrassing, as were other facts in his background.	Against Applicant	Omission or Failure to DiscloseFOUND DELIBERATE	Financial	Denied	—	—	—
2.c	Applicant failed to disclose that he and his brother traveled to Iraq in September 2010, in order to negotiate a deal to sell Brazilian sugar to Iraq. They were there until the end of October 2010. Applicant stated that his brother is a businessperson, who is paralyzed and uses a wheelchair. Applicant strongly asserted that he went on the trip to assist his brother in personal hygienic matters. He also drove him to places, helped him with a wheelchair, and took him to meetings. Applicant had dinner with his brother and others after a meeting, but stated that he did not discuss business with anyone. He denied having any participation in business meetings. He testified that he did not disclose this information because no business materialized as a consequence of this visit. He denied that he was trying to hide information from the Government.	Against Applicant	Omission or Failure to DiscloseFOUND DELIBERATE	Foreign Contacts or Interests	Denied	—	—	—
2.d	Applicant failed to disclose that he and his brother researched the possibility of acquiring and shipping vehicles to Iraq for a profit. Applicant denied that he was involved in any discussions regarding selling vehicles to buyers in Iraq. He said another person spoke to his brother about the potential opportunity in Iraq. Applicant stated he did not disclose this information because nothing materialized after communications related to this topic.	Against Applicant	Omission or Failure to DiscloseFOUND DELIBERATE	Foreign Contacts or Interests	Denied	—	—	—
2.e	Applicant failed to disclose that he and his brother attended a meeting in a U.S. city about using his brother’s business to provide industrial equipment to an Iraqi company. Applicant said he took his brother to a meeting with Iraqi nationals, who became U.S. citizens, about an opportunity in the oil business in Iraq. Applicant denied attending the meeting, although he had two business cards from people attending that meeting. He did not disclose this interaction or communications with foreign nationals because a business proposal did not materialize.	Against Applicant	Omission or Failure to DiscloseFOUND DELIBERATE	Foreign Contacts or Interests	Denied	—	—	—
2.f	Applicant failed to disclose the civil judgments filed against him in 2010 as alleged in SOR ¶¶ 1.b and 1.c. He said he did not disclose them because they were resolved.	Against Applicant	Omission or Failure to DiscloseFOUND DELIBERATE	Financial	Denied	—	—	—
2.g	Applicant failed to disclose his arrest and charge involving the federal program fraud, as alleged in SOR ¶ 1.h. Applicant said he did not disclose the felony because he forgot about it and was in a hurry to finish the 2015 SCA.	Against Applicant	Omission or Failure to DiscloseFOUND DELIBERATE	Criminal Conduct	Denied	—	—	—
2.h	Applicant failed to disclose his conviction for domestic violence in 1990. He said he did not disclose this conviction because he was rushing to complete the SCA and he does not think of himself as a violent person. During a May 2015 interview, Applicant was asked why he did not disclose this case. He told the investigator that he did not list the incident because he was embarrassed about it. He admitted that he intentionally answered no, but said he intended to disclose it during a background interview.	Against Applicant	Omission or Failure to DiscloseFOUND DELIBERATE	Criminal Conduct	Denied	—	—	—
2.i	Applicant failed to disclose his arrest for operating a vehicle while impaired (OWI) and for failure to report an accident in December 2000. Applicant said he did not realize he was arrested for an OWI the night of the accident. He admitted that he had consumed alcohol before the arrest and took a field sobriety test at the time of the arrest, but he did not consider it an alcohol-related incident. He said alcohol was not a “big factor in that accident.” His lawyer told him to plead guilty to failing to report an accident.	Against Applicant	Omission or Failure to DiscloseFOUND DELIBERATE	Criminal Conduct	Denied	—	—	—
2.j	Applicant admitted he was terminated from Company 3 in January 2008 for leaving Iraq without authorization, but denied any wrongdoing. Applicant said he was assigned to personally assist a colonel when he arrived in Iraq. When the colonel traveled to a nearby country, Applicant accompanied him. After returning to Iraq, his employer informed him that he forfeited his contract and sent him home. Applicant disputed the circumstances underlying the termination and believed that he had been authorized to leave the country because he was assigned to work with the colonel.	Against Applicant	Omission or Failure to Disclose	—	Denied	—	—	—
2.k	In July 2005, Applicant was terminated from his employment, as a contracted interpreter, and disqualified from working for the immigration court in the future. He allegedly intimidated an immigrant during the translation process. Applicant denied the basis for the termination. He did not disclose this information on the 2015 SCA.	Against Applicant	Omission or Failure to Disclose	—	Denied	—	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

The SOR alleged that Applicant’s arrest and charge for making false statements to a federal loan program in 1998 to 1999, and his failure to report income, as alleged in ¶ 1.h through ¶ 1.j, raised personal conduct security concerns.

Against Applicant

Omission or Failure to DiscloseFOUND DELIBERATE

Criminal Conduct

Denied

—

2.b

Applicant did not report the delinquent debts alleged in SOR ¶¶ 1.d, 1.e, and 1.f. He reported the 2010 bankruptcy. Applicant said the SCA was too long and he was in a hurry to finish it. He thought the SCA went to his potential employer, who did not care about those details. He acknowledged that his financial issues were embarrassing, as were other facts in his background.

Against Applicant

Omission or Failure to DiscloseFOUND DELIBERATE

Financial

Denied

—

2.c

Applicant failed to disclose that he and his brother traveled to Iraq in September 2010, in order to negotiate a deal to sell Brazilian sugar to Iraq. They were there until the end of October 2010. Applicant stated that his brother is a businessperson, who is paralyzed and uses a wheelchair. Applicant strongly asserted that he went on the trip to assist his brother in personal hygienic matters. He also drove him to places, helped him with a wheelchair, and took him to meetings. Applicant had dinner with his brother and others after a meeting, but stated that he did not discuss business with anyone. He denied having any participation in business meetings. He testified that he did not disclose this information because no business materialized as a consequence of this visit. He denied that he was trying to hide information from the Government.

Against Applicant

Omission or Failure to DiscloseFOUND DELIBERATE

Foreign Contacts or Interests

Denied

—

2.d

Applicant failed to disclose that he and his brother researched the possibility of acquiring and shipping vehicles to Iraq for a profit. Applicant denied that he was involved in any discussions regarding selling vehicles to buyers in Iraq. He said another person spoke to his brother about the potential opportunity in Iraq. Applicant stated he did not disclose this information because nothing materialized after communications related to this topic.

Against Applicant

Omission or Failure to DiscloseFOUND DELIBERATE

Foreign Contacts or Interests

Denied

—

2.e

Applicant failed to disclose that he and his brother attended a meeting in a U.S. city about using his brother’s business to provide industrial equipment to an Iraqi company. Applicant said he took his brother to a meeting with Iraqi nationals, who became U.S. citizens, about an opportunity in the oil business in Iraq. Applicant denied attending the meeting, although he had two business cards from people attending that meeting. He did not disclose this interaction or communications with foreign nationals because a business proposal did not materialize.

Against Applicant

Omission or Failure to DiscloseFOUND DELIBERATE

Foreign Contacts or Interests

Denied

—

2.f

Applicant failed to disclose the civil judgments filed against him in 2010 as alleged in SOR ¶¶ 1.b and 1.c. He said he did not disclose them because they were resolved.

Against Applicant

Omission or Failure to DiscloseFOUND DELIBERATE

Financial

Denied

—

2.g

Applicant failed to disclose his arrest and charge involving the federal program fraud, as alleged in SOR ¶ 1.h. Applicant said he did not disclose the felony because he forgot about it and was in a hurry to finish the 2015 SCA.

Against Applicant

Omission or Failure to DiscloseFOUND DELIBERATE

Criminal Conduct

Denied

—

2.h

Applicant failed to disclose his conviction for domestic violence in 1990. He said he did not disclose this conviction because he was rushing to complete the SCA and he does not think of himself as a violent person. During a May 2015 interview, Applicant was asked why he did not disclose this case. He told the investigator that he did not list the incident because he was embarrassed about it. He admitted that he intentionally answered no, but said he intended to disclose it during a background interview.

Against Applicant

Omission or Failure to DiscloseFOUND DELIBERATE

Criminal Conduct

Denied

—

2.i

Applicant failed to disclose his arrest for operating a vehicle while impaired (OWI) and for failure to report an accident in December 2000. Applicant said he did not realize he was arrested for an OWI the night of the accident. He admitted that he had consumed alcohol before the arrest and took a field sobriety test at the time of the arrest, but he did not consider it an alcohol-related incident. He said alcohol was not a “big factor in that accident.” His lawyer told him to plead guilty to failing to report an accident.

Against Applicant

Omission or Failure to DiscloseFOUND DELIBERATE

Criminal Conduct

Denied

—

2.j

Applicant admitted he was terminated from Company 3 in January 2008 for leaving Iraq without authorization, but denied any wrongdoing. Applicant said he was assigned to personally assist a colonel when he arrived in Iraq. When the colonel traveled to a nearby country, Applicant accompanied him. After returning to Iraq, his employer informed him that he forfeited his contract and sent him home. Applicant disputed the circumstances underlying the termination and believed that he had been authorized to leave the country because he was assigned to work with the colonel.

Against Applicant

Omission or Failure to Disclose

—

Denied

—

2.k

In July 2005, Applicant was terminated from his employment, as a contracted interpreter, and disqualified from working for the immigration court in the future. He allegedly intimidated an immigrant during the translation process. Applicant denied the basis for the termination. He did not disclose this information on the 2015 SCA.

Against Applicant

Omission or Failure to Disclose

—

Denied

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant filed a Chapter 7 bankruptcy in January 2010, which was dismissed in May 2010.	Against Applicant	Bankruptcy Filing	Denied	—	—	—
1.c	The $4,431 judgment entered in October 2010 is owed to Applicant’s former attorney for fees related to his representation of Applicant before a state revenue department in a case involving unpaid sales taxes for 1994 and 1995. $4,431	Against Applicant	Unspecified Financial	Denied	—	—	—
1.f	In October 2015, Applicant paid and resolved the $4,392 debt, owed to a credit card company. $4,392	For Applicant	Credit Card Debt	Denied	—	—	—
1.g	Applicant asserted that he paid the $3,429 debt owed to a credit card company in 1989. $3,429	Against Applicant	Unspecified Financial	Denied	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant filed a Chapter 7 bankruptcy in January 2010, which was dismissed in May 2010.

Against Applicant

Bankruptcy Filing

Denied

—

1.c

The $4,431 judgment entered in October 2010 is owed to Applicant’s former attorney for fees related to his representation of Applicant before a state revenue department in a case involving unpaid sales taxes for 1994 and 1995.

$4,431

Against Applicant

Unspecified Financial

Denied

—

1.f

In October 2015, Applicant paid and resolved the $4,392 debt, owed to a credit card company.

$4,392

For Applicant

Credit Card Debt

Denied

—

1.g

Applicant asserted that he paid the $3,429 debt owed to a credit card company in 1989.

$3,429

Against Applicant

Unspecified Financial

Denied

—

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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

PROCEDURAL RULINGS

FINDINGS OF FACT

POLICIES

ANALYSIS

WHOLE PERSON CONCEPT

FORMAL FINDINGS

CONCLUSION

FOOTNOTES