ISCR Case 04-02630.h1

Case Headnote

ISCR Case No. 04-02630.h1

grantedAug 22, 2006· Hon. Richard A. Cefola· hearing

Summary

A 60-year-old defense contractor was granted a security clearance despite concerns under Guidelines B (Foreign Influence), E (Personal Conduct), and F (Financial Considerations). The Applicant’s two brothers are citizens and residents of Afghanistan, and he worked for the Afghan government without pay from March to July 2004.

Regarding personal conduct, the Applicant failed to disclose a 1997 Chapter 7 bankruptcy and several past-due debts on his November 2003 Security Clearance Application (SCA). He attributed these omissions to a misunderstanding of the questions, as English is not his native language, and a mistaken belief that seven years had passed since his bankruptcy. He subsequently disclosed these issues on an October 2004 QNSP, demonstrating no intent to deceive.

Financial concerns stemmed from a 1997 Chapter 7 bankruptcy, which resulted from medical bills following an accident with an uninsured motorist. As of March 2006, he was making $500 monthly payments on a $7,053.25 hospital debt. He also settled debts with a telephone provider for $537.95, a second hospital for $4,441.33, a video store for $156, and a credit card company for $1,600. Additionally, he formally disputed two smaller phone company debts. The Administrative Judge found that the Applicant had addressed all past-due debts, maintained a positive monthly cash flow, and met the mitigating conditions for all guidelines, leading to the clearance being granted.

Why the Applicant Prevailed

The Applicant addressed all past due debts and has a positive monthly cash flow.
Financial difficulties were largely due to an unexpected medical emergency.
There was no intent to deceive regarding the bankruptcy disclosure; the Applicant misunderstood the questions on the SCA.

Conditions Referenced

Disqualifying

E2.A1raisedForeign Influence
F1raisedFinancial Considerations
E1raisedPersonal Conduct

Mitigating

F3appliedFinancial ConsiderationsThe Applicant has initiated a good-faith effort to repay overdue creditors.
E2appliedPersonal ConductThe Applicant corrected his previous disclosure errors in a subsequent application.
B1appliedForeign InfluenceThere is no evidence that the Applicant's foreign relatives can be exploited by a foreign power.

Key Rule Quoted

“The Government must make out a case under Guidelines B (Foreign Influence), E (Personal Conduct), and F (Financial Considerations); which establishes doubt about a person's judgment, reliability and trustworthiness.”

Procedural Posture

SOR issuedJul 21, 2005
Answer filedAug 11, 2005
Hearing heldMay 25, 2006
Decision dateAug 22, 2006

Cite For

Mitigating Conditions for Financial Difficulties Under Guideline F
Credibility Issues Related to Personal Conduct Under Guideline E
Foreign Influence Considerations Involving Family Members Under Guideline B

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	The Applicant’s two brothers are citizens and residents of Afghanistan.	For Applicant	Sibling in Foreign Country Immediate Family	Afghanistan	Denied	(a) contact with a foreign family member/associate/friend creating a heightened risk of exploitation	(a) relationships such that a conflict between foreign and U.S. interests is unlikely	Claimed Other
2.b	The Applicant worked for the Afghan government, without pay, from March to July of 2004.	For Applicant	Unspecified Foreign Relationship Other GOVT-AFFILIATED	Afghanistan	Denied	(a) contact with a foreign family member/associate/friend creating a heightened risk of exploitation	(a) relationships such that a conflict between foreign and U.S. interests is unlikely	Claimed Other

Allegation

Finding

Relationship

Country

Response

Disqualifying (¶7)

Mitigating applied (¶8)

Mitigation

2.a

The Applicant’s two brothers are citizens and residents of Afghanistan.

For Applicant

Sibling in Foreign Country

Immediate Family

Afghanistan

Denied

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

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

Claimed

Other

2.b

The Applicant worked for the Afghan government, without pay, from March to July of 2004.

For Applicant

Unspecified Foreign Relationship

Other

GOVT-AFFILIATED

Afghanistan

Denied

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

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

Claimed

Other

¶	Allegation	Finding	Conduct	Concealed Issue	Response	Disqualifying (¶16)	Mitigating applied (¶17)	Mitigation
1.a	In answer to question 33 on his November 2003 SCA, the Applicant failed to disclose his August 1997 bankruptcy. He mistakenly thought that seven years had passed since he filed the Chapter 7 Bankruptcy. There was no intention to deceive the Government, however, and the Applicant did disclose this filing in a subsequent October 2004 QNSP.	For Applicant	Omission or Failure to DiscloseNOT DELIBERATESELF-CORRECTED	Other	Denied	—	(a) prompt, good-faith correction before being confronted	Credited Corrected Falsification Promptly
1.b	In answer to questions 38 and 39 on his November 2003 SCA, the Applicant failed to disclose his debts in excess of 90 days and 180 days past due. He misread the questions, as English is not his native language. There was no intention to deceive the Government, and the Applicant did disclose his delinquencies in his subsequent October 2004 QNSP.	For Applicant	Omission or Failure to DiscloseNOT DELIBERATESELF-CORRECTED	Other	Denied	—	(a) prompt, good-faith correction before being confronted	Credited Corrected Falsification Promptly
1.c	specific text not stated in this decision	For Applicant	Unspecified Personal Conduct	—	Unknown	—	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

1.a

In answer to question 33 on his November 2003 SCA, the Applicant failed to disclose his August 1997 bankruptcy. He mistakenly thought that seven years had passed since he filed the Chapter 7 Bankruptcy. There was no intention to deceive the Government, however, and the Applicant did disclose this filing in a subsequent October 2004 QNSP.

For Applicant

Omission or Failure to DiscloseNOT DELIBERATESELF-CORRECTED

Other

Denied

—

(a) prompt, good-faith correction before being confronted

Credited

Corrected Falsification Promptly

1.b

In answer to questions 38 and 39 on his November 2003 SCA, the Applicant failed to disclose his debts in excess of 90 days and 180 days past due. He misread the questions, as English is not his native language. There was no intention to deceive the Government, and the Applicant did disclose his delinquencies in his subsequent October 2004 QNSP.

For Applicant

Omission or Failure to DiscloseNOT DELIBERATESELF-CORRECTED

Other

Denied

—

(a) prompt, good-faith correction before being confronted

Credited

Corrected Falsification Promptly

1.c

specific text not stated in this decision

For Applicant

Unspecified Personal Conduct

—

Unknown

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	The Applicant is making monthly payments of $500 to a hospital, for a past due debt totaling $7,053.25, as of March 1, 2006 $7,053	For Applicant	Medical Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(c) received/receiving counseling; problem being resolved	—
1.b	The Applicant settled his debt with a telephone provider for $537.95, to the satisfaction of the creditor $537	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(c) received/receiving counseling; problem being resolved	—
1.c	The Applicant settled his debt with a second hospital for $4,441.33, to the satisfaction of the creditor $4,441	For Applicant	Medical Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(c) received/receiving counseling; problem being resolved	—
1.d	The Applicant has formally disputed a $66 debt to another phone company $66	For Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts	—	—
1.e	The Applicant settled his $156 debt with a video store, to the satisfaction of the creditor $156	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(c) received/receiving counseling; problem being resolved	—
1.f	The Applicant settled his debt with a credit card company for $1,600, to the satisfaction of the creditor $1,600	For Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(c) received/receiving counseling; problem being resolved	—
1.g	The Applicant has formally disputed a $25 debt to third phone company $25	For Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts	—	—
1.h	specific text not stated in this decision	For Applicant	Unspecified Financial	Unknown	—	—	—
1.i	The Applicant was involved in an accident with an uninsured motorist; and as a result, suffered numerous medical bills, which caused him to file for the protection of a Chapter 7 Bankruptcy in 1997	For Applicant	Bankruptcy Filing	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(c) received/receiving counseling; problem being resolved	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

The Applicant is making monthly payments of $500 to a hospital, for a past due debt totaling $7,053.25, as of March 1, 2006

$7,053

For Applicant

Medical Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(c) received/receiving counseling; problem being resolved

—

1.b

The Applicant settled his debt with a telephone provider for $537.95, to the satisfaction of the creditor

$537

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(c) received/receiving counseling; problem being resolved

—

1.c

The Applicant settled his debt with a second hospital for $4,441.33, to the satisfaction of the creditor

$4,441

For Applicant

Medical Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(c) received/receiving counseling; problem being resolved

—

1.d

The Applicant has formally disputed a $66 debt to another phone company

$66

For Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

—

1.e

The Applicant settled his $156 debt with a video store, to the satisfaction of the creditor

$156

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(c) received/receiving counseling; problem being resolved

—

1.f

The Applicant settled his debt with a credit card company for $1,600, to the satisfaction of the creditor

$1,600

For Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(c) received/receiving counseling; problem being resolved

—

1.g

The Applicant has formally disputed a $25 debt to third phone company

$25

For Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

—

1.h

specific text not stated in this decision

For Applicant

Unspecified Financial

Unknown

—

1.i

The Applicant was involved in an accident with an uninsured motorist; and as a result, suffered numerous medical bills, which caused him to file for the protection of a Chapter 7 Bankruptcy in 1997

For Applicant

Bankruptcy Filing

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(c) received/receiving counseling; problem being resolved

—

Loading case…

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

SYNOPSIS

APPEARANCES

STATEMENT OF CASE

FINDINGS OF FACT

POLICIES

CONCLUSION

FORMAL FINDINGS

DECISION

FOOTNOTES