ISCR Case 07-10841.h1

Case Headnote

ISCR Case No. 07-10841.h1

deniedMay 27, 2009· Hon. Wilford H. Ross· hearing

Summary

A 58-year-old retired military member residing in South Korea was denied a security clearance due to concerns under Guideline B (Foreign Influence) and Guideline F (Financial Considerations). The applicant's financial difficulties totaled approximately $107,000 in unresolved debts, including specific amounts owed to Chase ($17,391), Discover ($6,135), Unifund ($18,915), American Express ($3,796), and two other collection agencies ($29,829 and $31,643). These debts were primarily attributed to his wife's gambling addiction, and he had not actively addressed them. Additionally, the applicant admitted to failing to file income tax returns timely from 1998 through 2005.

Foreign influence concerns arose from the applicant's long-term residency in South Korea and his wife being a South Korean national. While the applicant provided evidence suggesting his foreign relationships were unlikely to create a conflict of interest with U.S. interests, the judge found this insufficient to mitigate the risks.

Ultimately, the clearance was denied because the applicant had approximately $107,000 in unresolved debts, demonstrating financial irresponsibility. His financial issues were linked to his wife's gambling addiction, which he had not adequately addressed, and he failed to show a good-faith effort to resolve his debts. Despite his long-term employment and loyalty to the U.S., the judge found insufficient evidence to mitigate the risks associated with both his financial situation and foreign connections.

Why the Applicant Was Denied

The applicant has approximately $107,000 in unresolved debts, indicating financial irresponsibility.
The applicant's financial issues are linked to his wife's gambling addiction, which he has not adequately addressed.
The applicant failed to demonstrate a good-faith effort to resolve his debts, undermining his claims of reliability.

Conditions Referenced

Disqualifying

F.1raisedFinancial Considerations
B.7(a)raisedForeign Influence
B.7(b)raisedForeign Influence
B.7(d)raisedForeign Influence

Mitigating

F.20(g)rejectedFinancial ConsiderationsThe applicant has not shown evidence of resolving his financial issues.
B.7(a)appliedForeign InfluenceThe applicant's connections to South Korea do not create a significant risk of divided loyalties.
B.7(b)appliedForeign InfluenceThe applicant's loyalty to the U.S. was established despite foreign connections.

Key Rule Quoted

“Any doubt concerning personnel being considered for access to classified information will be resolved in favor of national security.”

Procedural Posture

SOR issuedDec 17, 2007
Answer filedFeb 20, 2008
Hearing heldFeb 10, 2009via Video Tele-Conference
Decision dateMay 27, 2009

Cite For

Financial Irresponsibility Due to Gambling Addiction Under Guideline F
Foreign Influence Concerns Related to Foreign Family Members Under Guideline B
Insufficient Evidence of Debt Resolution Impacting 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
2.a	The Applicant has connections to South Korea because he lives there and his wife is a South Korean national.	For Applicant	Spouse Dual or Foreign Citizen Immediate Family	South Korea	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	The Applicant has lived and worked in South Korea for many years.	For Applicant	Unspecified Foreign Relationship Other	South Korea	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	The Applicant has provided compelling evidence to show that the nature of the relationships with foreign persons, the country in which these persons are located, or the positions or activities of those persons in that country are such that it is unlikely the individual will be placed in a position of having to choose between the interests of a foreign individual, group, organization, or government and the interests of the U.S.	For Applicant	Unspecified Foreign Relationship Other	South Korea	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.	—

Allegation

Finding

Relationship

Country

Response

Disqualifying (¶7)

Mitigating applied (¶8)

Mitigation

2.a

The Applicant has connections to South Korea because he lives there and his wife is a South Korean national.

For Applicant

Spouse Dual or Foreign Citizen

Immediate Family

South Korea

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

The Applicant has lived and worked in South Korea for many years.

For Applicant

Unspecified Foreign Relationship

Other

South Korea

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

The Applicant has provided compelling evidence to show that the nature of the relationships with foreign persons, the country in which these persons are located, or the positions or activities of those persons in that country are such that it is unlikely the individual will be placed in a position of having to choose between the interests of a foreign individual, group, organization, or government and the interests of the U.S.

For Applicant

Unspecified Foreign Relationship

Other

South Korea

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.

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	The Applicant admits that he is indebted to a collection agency for Chase in the amount of approximately $17,391.00. $17,391	Against Applicant	Credit Card Debt	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	—	—
1.b	The Applicant admits that he is indebted to a collection agency for Discover in the amount of approximately $6,135.00. $6,135	Against Applicant	Credit Card Debt	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	—	—
1.c	The Applicant admits that he is indebted to Unifund in the amount of approximately $18,915.00. $18,915	Against Applicant	Unspecified Financial	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	—	—
1.d	The Applicant admits that he is indebted to a collection agency in the amount of approximately $29,829.00. $29,829	Against Applicant	Unspecified Financial	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	—	—
1.e	The Applicant admits that he is indebted to American Express in the amount of approximately $3,796.00. $3,796	Against Applicant	Credit Card Debt	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	—	—
1.f	The Applicant admits that he is indebted to a collection agency in the amount of approximately $31,643.00. $31,643	Against Applicant	Unspecified Financial	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	—	—
1.g	The Applicant admitted that he had failed to file his income tax returns in a timely manner from 1998 through 2005.	For Applicant	Tax Filing Failure	Admitted	(g) unexplained affluence	—	—
1.h	As stated above, the Applicant’s wife was a compulsive gambler in 1999-2000.	Against Applicant	Unspecified Financial	Unknown	(f) failure to file / fraudulent filing of tax returns or unpaid tax	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

The Applicant admits that he is indebted to a collection agency for Chase in the amount of approximately $17,391.00.

$17,391

Against Applicant

Credit Card Debt

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

—

1.b

The Applicant admits that he is indebted to a collection agency for Discover in the amount of approximately $6,135.00.

$6,135

Against Applicant

Credit Card Debt

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

—

1.c

The Applicant admits that he is indebted to Unifund in the amount of approximately $18,915.00.

$18,915

Against Applicant

Unspecified Financial

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

—

1.d

The Applicant admits that he is indebted to a collection agency in the amount of approximately $29,829.00.

$29,829

Against Applicant

Unspecified Financial

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

—

1.e

The Applicant admits that he is indebted to American Express in the amount of approximately $3,796.00.

$3,796

Against Applicant

Credit Card Debt

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

—

1.f

The Applicant admits that he is indebted to a collection agency in the amount of approximately $31,643.00.

$31,643

Against Applicant

Unspecified Financial

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

—

1.g

The Applicant admitted that he had failed to file his income tax returns in a timely manner from 1998 through 2005.

For Applicant

Tax Filing Failure

Admitted

(g) unexplained affluence

—

1.h

As stated above, the Applicant’s wife was a compulsive gambler in 1999-2000.

Against Applicant

Unspecified Financial

Unknown

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

—

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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

FOOTNOTES