ISCR Case 08-00081.h1

Case Headnote

ISCR Case No. 08-00081.h1

grantedJun 15, 2009· Hon. Marc E. Curry· hearing

Summary

A 36-year-old U.S. citizen and defense contractor was granted a security clearance despite initial concerns under Guidelines B (Foreign Influence), E (Personal Conduct), and F (Financial Considerations). The concerns stemmed from his wife and in-laws being citizens and residents of South Korea, and a history of delinquent debt, some of which was not fully disclosed on his 2005 security clearance application.

Specific financial allegations included a repossessed automobile, a shared credit card, a phone account for his ex-wife, a 2004 medical bill for his son, and various other debts, some of which were unidentifiable or duplicates. An automobile loan was also transferred to his ex-wife via a divorce decree.

The judge found that the applicant mitigated the foreign influence concern due to the nature of his relationships and the stability of South Korea. He resolved his financial issues through credit counseling and timely payments, satisfying all delinquent debts and demonstrating current financial stability. His explanation for the incomplete disclosure was deemed credible, not constituting falsification. Consequently, the security clearance was granted.

Why the Applicant Prevailed

The applicant mitigated foreign influence concerns due to the nature of his relationships with South Korean family members and their innocuous occupations.
The applicant satisfied all delinquent debts and demonstrated current financial stability and responsibility.
The applicant's explanation for failing to disclose all delinquencies was credible and did not constitute falsification.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
AG ¶ 16(a)raisedDeliberate Omission, Concealment, or Falsification of Relevant Facts

Mitigating

AG ¶ 8(b)appliedNo Conflict of Interest Due to Strong U.S. Ties
AG ¶ 20(b)appliedConditions Leading to Financial Problems Were Largely Beyond the Applicant's Control
AG ¶ 20(c)appliedThe Applicant Received Counseling for Financial Issues and Demonstrated Resolution
AG ¶ 20(d)appliedThe Applicant Made Good-faith Efforts to Repay Creditors
AG ¶ 20(e)appliedThe Applicant Disputed the Legitimacy of Some Debts and Provided Evidence

Key Rule Quoted

“The protection of the national security is the paramount consideration.”

Procedural Posture

SOR issuedSep 24, 2008
Answer filedNov 12, 2008
Hearing heldApr 7, 2009Record left open for additional exhibits.
Decision dateJun 15, 2009

Cite For

Mitigation of Foreign Influence Concerns Due to Family Ties in a Stable Allied Country
Resolution of Financial Delinquencies Through Credit Counseling and Timely Payments
Credibility of Applicant's Explanations Regarding Financial Disclosures on Security Clearance Applications

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
1.a	Applicant’s wife and in-laws are citizens and residents of South Korea.	For Applicant	In Law in Foreign Country Immediate Family	South Korea	Admitted	(a) contact with a foreign family member/associate/friend creating a heightened risk of exploitation	(b) deep/longstanding U.S. loyalties; conflict resolves in favor of the U.S.	Claimed Other
1.b	Applicant has a history of delinquent debt which he failed to disclose in its entirety on his 2005 security clearance application.	For Applicant	Unspecified Foreign Relationship Other	—	Denied	(a) contact with a foreign family member/associate/friend creating a heightened risk of exploitation	(b) deep/longstanding U.S. loyalties; conflict resolves in favor of the U.S.	Claimed Other
1.c	Applicant’s relationship with his wife and in-laws, all South Korean citizens and residents, triggers the application of AG ¶ 7(a) and AG ¶ 7(d).	For Applicant	In Law in Foreign Country Immediate Family	South Korea	Admitted	(a) contact with a foreign family member/associate/friend creating a heightened risk of exploitation	(b) deep/longstanding U.S. loyalties; conflict resolves in favor of the U.S.	Claimed Other

Allegation

Finding

Relationship

Country

Response

Disqualifying (¶7)

Mitigating applied (¶8)

Mitigation

1.a

Applicant’s wife and in-laws are citizens and residents of South Korea.

For Applicant

In Law in Foreign Country

Immediate Family

South Korea

Admitted

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

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

Claimed

Other

1.b

Applicant has a history of delinquent debt which he failed to disclose in its entirety on his 2005 security clearance application.

For Applicant

Unspecified Foreign Relationship

Other

—

Denied

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

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

Claimed

Other

1.c

Applicant’s relationship with his wife and in-laws, all South Korean citizens and residents, triggers the application of AG ¶ 7(a) and AG ¶ 7(d).

For Applicant

In Law in Foreign Country

Immediate Family

South Korea

Admitted

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

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

Claimed

Other

¶	Allegation	Finding	Conduct	Concealed Issue	Response	Disqualifying (¶16)	Mitigating applied (¶17)	Mitigation
4.a–4.f	6 sub-charges — specific text not stated in this decision (for the applicant).	Mixed		—		—	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

4.a–4.f

6 sub-charges — specific text not stated in this decision (for the applicant).

Mixed

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
2.a	SOR subparagraph 2.a is the deficiency remaining from a repossessed automobile.	For Applicant	Auto 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	Documented Debt Paid in Full
2.b	SOR subparagraph 2.b is a credit card account that Applicant and his wife shared.	For Applicant	Credit Card 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	Documented Debt Paid in Full
2.c	specific text not stated in this decision	Withdrawn	Unspecified Financial	Unknown	—	—	—
2.d	SOR subparagraphs 2.d and 2.i are duplicates.	For Applicant	Utility or Phone 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	Documented Debt Paid in Full
2.e	SOR subparagraph 2.e is a phone account Applicant had opened for his ex-wife.	For Applicant	Utility or Phone 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	Documented Debt Paid in Full
2.f	SOR subparagraph 2.f is a medical bill incurred in 2004 to treat his son.	For Applicant	Medical 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	Documented Debt Paid in Full
2.g	Neither Applicant nor his credit counseling agency could identify the creditor listed in SOR subparagraph 2.g. (low confidence)	For Applicant	Unspecified Financial	Unknown	—	—	—
2.h	SOR subparagraph 2.h is a debt allegedly owed to a video store. (low confidence)	For Applicant	Unspecified Financial	Unknown	—	—	—
2.i	specific text not stated in this decision	Withdrawn	Unspecified Financial	Unknown	—	—	—
2.j	SOR subparagraph 2.j is a duplicate of SOR subparagraph 2.k.	For Applicant	Credit Card Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly	Documented Debt Paid in Full
2.k–2.l	2 sub-charges — specific text not stated in this decision (rulings shown). (low confidence)	Mixed			—	—	—
2.m	Applicant contacted the creditor listed in SOR subparagraph 2.m to confirm the debt. (low confidence)	For Applicant	Unspecified Financial	Unknown	—	—	—
2.n	SOR subparagraph 2.n is a credit card Applicant’s ex-wife used when he was in the military.	For Applicant	Credit Card 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	Documented Debt Paid in Full
2.o	SOR subparagraph 2.o is the automobile loan that the divorce court transferred to Applicant’s ex-wife through their divorce decree.	For Applicant	Auto 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	Documented Debt Paid in Full
2.p–2.v	7 sub-charges — specific text not stated in this decision (for the applicant). (low confidence)	Mixed			—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

2.a

SOR subparagraph 2.a is the deficiency remaining from a repossessed automobile.

For Applicant

Auto 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

Documented

Debt Paid in Full

2.b

SOR subparagraph 2.b is a credit card account that Applicant and his wife shared.

For Applicant

Credit Card 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

Documented

Debt Paid in Full

2.c

specific text not stated in this decision

Withdrawn

Unspecified Financial

Unknown

—

2.d

SOR subparagraphs 2.d and 2.i are duplicates.

For Applicant

Utility or Phone 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

Documented

Debt Paid in Full

2.e

SOR subparagraph 2.e is a phone account Applicant had opened for his ex-wife.

For Applicant

Utility or Phone 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

Documented

Debt Paid in Full

2.f

SOR subparagraph 2.f is a medical bill incurred in 2004 to treat his son.

For Applicant

Medical 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

Documented

Debt Paid in Full

2.g

Neither Applicant nor his credit counseling agency could identify the creditor listed in SOR subparagraph 2.g. (low confidence)

For Applicant

Unspecified Financial

Unknown

—

2.h

SOR subparagraph 2.h is a debt allegedly owed to a video store. (low confidence)

For Applicant

Unspecified Financial

Unknown

—

2.i

specific text not stated in this decision

Withdrawn

Unspecified Financial

Unknown

—

2.j

SOR subparagraph 2.j is a duplicate of SOR subparagraph 2.k.

For Applicant

Credit Card Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Documented

Debt Paid in Full

2.k–2.l

2 sub-charges — specific text not stated in this decision (rulings shown). (low confidence)

Mixed

—

2.m

Applicant contacted the creditor listed in SOR subparagraph 2.m to confirm the debt. (low confidence)

For Applicant

Unspecified Financial

Unknown

—

2.n

SOR subparagraph 2.n is a credit card Applicant’s ex-wife used when he was in the military.

For Applicant

Credit Card 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

Documented

Debt Paid in Full

2.o

SOR subparagraph 2.o is the automobile loan that the divorce court transferred to Applicant’s ex-wife through their divorce decree.

For Applicant

Auto 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

Documented

Debt Paid in Full

2.p–2.v

7 sub-charges — specific text not stated in this decision (for the applicant). (low confidence)

Mixed

—

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

APPEARANCES

STATEMENT OF CASE

FINDINGS OF FACT

POLICIES

ANALYSIS

WHOLE PERSON CONCEPT

FORMAL FINDINGS

CONCLUSION

FOOTNOTES