ISCR Case 10-02585.h1

Case Headnote

ISCR Case No. 10-02585.h1

deniedJan 24, 2011· Hon. Darlene Lokey Anderson· hearing

Summary

A 46-year-old naturalized U.S. citizen, originally from South Korea, was denied a security clearance by Administrative Judge Darlene D. Lokey Anderson. The denial was based on concerns under Guideline B (Foreign Influence), Guideline E (Personal Conduct), and Guideline F (Financial Considerations).

The applicant's close family ties in South Korea, including his wife and other relatives, raised potential foreign influence risks. Additionally, the applicant demonstrated significant financial irresponsibility, accumulating over $40,000 in delinquent debts across multiple credit cards.

Crucially, the applicant falsified information on his June 22, 2009, Questionnaire for National Security Positions. He falsely answered "NO" to questions regarding debts turned over to collection agencies, suspended or charged-off accounts, and being over 180 or 90 days delinquent on debts. The applicant admitted to these false responses, stating he was embarrassed by his financial history and made a conscious decision not to reveal the true extent of his debts. These actions indicated poor judgment and unreliability, leading to the denial of his security clearance.

Why the Applicant Was Denied

The applicant has significant foreign contacts that could create a potential for foreign influence.
The applicant admitted to falsifying information on his security clearance application regarding his financial history.
The applicant has a history of financial irresponsibility, with over $40,000 in delinquent debts.

Conditions Referenced

Disqualifying

B.7.aappliedContact with a Foreign Family Member, Business or Professional Associate, Friend, or Other Person Who Is a Citizen of or Resident of a Foreign Country If That Contact Creates a Heightened Risk of Foreign Exploitation, Inducement, Manipulation, Pressure, or Coercion.
B.7.bappliedConnections to a Foreign Person, Group, Government, or Country That Create a Potential Conflict of Interest Between the Individual’s Obligation to Protect Sensitive Information or Technology and the Individual’s Desire to Help a Foreign Person, Group, or Country by Providing That Information.
E.16.aappliedDeliberate Omission, Concealment, or Falsification of Relevant Facts From Any Personnel Security Questionnaire, Personal History Statement, or Similar Form Used to Conduct Investigations, Determine Employment Qualifications, Award Benefits or Status, Determine Security Clearance Eligibility or Trustworthiness, or Award Fiduciary Responsibilities.
F.19.aappliedInability or Unwillingness to Satisfy Debts.
F.19.cappliedA History of Not Meeting Financial Obligations.

Mitigating

F.20.drejectedThe Individual Initiated a Good Faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts.While the applicant is in a debt consolidation program, the overall financial irresponsibility and history of delinquency were deemed significant.

Key Rule Quoted

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

Procedural Posture

SOR issuedSep 13, 2010
Answer filedSep 28, 2010
Hearing heldDec 13, 2010Applicant requested a continuance for an interpreter.
Decision dateJan 24, 2011

Cite For

Foreign Influence Due to Family Ties Under Guideline B
Falsification of Security Clearance Application Under Guideline E
Financial Irresponsibility Under Guideline F

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	The Applicant has foreign contacts that could create the potential for foreign influence that could result in the compromise of classified information.	Against Applicant	Spouse Dual or Foreign Citizen Immediate Family	South Korea HEIGHTENED RISK	Unknown	(a) contact with a foreign family member/associate/friend creating a heightened risk of exploitation (b) connections creating a potential conflict of interest	—	—
1.b	The Applicant has foreign contacts that could create the potential for foreign influence that could result in the compromise of classified information.	Against Applicant	Sibling in Foreign Country Immediate Family	South Korea HEIGHTENED RISK	Unknown	(a) contact with a foreign family member/associate/friend creating a heightened risk of exploitation (b) connections creating a potential conflict of interest	—	—
1.c	The Applicant has foreign contacts that could create the potential for foreign influence that could result in the compromise of classified information.	Against Applicant	In Law in Foreign Country Immediate Family	South Korea HEIGHTENED RISK	Unknown	(a) contact with a foreign family member/associate/friend creating a heightened risk of exploitation (b) connections creating a potential conflict of interest	—	—
1.d	The Applicant has foreign contacts that could create the potential for foreign influence that could result in the compromise of classified information.	Against Applicant	Unspecified Foreign Relationship Other	South Korea HEIGHTENED RISK	Unknown	(a) contact with a foreign family member/associate/friend creating a heightened risk of exploitation (b) connections creating a potential conflict of interest	—	—
1.e	The Applicant has foreign contacts that could create the potential for foreign influence that could result in the compromise of classified information.	Against Applicant	Unspecified Foreign Relationship Other	South Korea HEIGHTENED RISK	Unknown	(a) contact with a foreign family member/associate/friend creating a heightened risk of exploitation (b) connections creating a potential conflict of interest	—	—
1.f	The Applicant has foreign contacts that could create the potential for foreign influence that could result in the compromise of classified information.	Against Applicant	Unspecified Foreign Relationship Other	South Korea HEIGHTENED RISK	Unknown	(a) contact with a foreign family member/associate/friend creating a heightened risk of exploitation (b) connections creating a potential conflict of interest	—	—
2.a–3.c	6 sub-charges — specific text not stated in this decision (3 against, 3 for the applicant). (low confidence)	Mixed	Unspecified Foreign Relationship Other	—		—	—	—

Allegation

Finding

Relationship

Country

Response

Disqualifying (¶7)

Mitigating applied (¶8)

Mitigation

1.a

The Applicant has foreign contacts that could create the potential for foreign influence that could result in the compromise of classified information.

Against Applicant

Spouse Dual or Foreign Citizen

Immediate Family

South Korea

HEIGHTENED RISK

Unknown

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

(b) connections creating a potential conflict of interest

—

1.b

The Applicant has foreign contacts that could create the potential for foreign influence that could result in the compromise of classified information.

Against Applicant

Sibling in Foreign Country

Immediate Family

South Korea

HEIGHTENED RISK

Unknown

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

(b) connections creating a potential conflict of interest

—

1.c

The Applicant has foreign contacts that could create the potential for foreign influence that could result in the compromise of classified information.

Against Applicant

In Law in Foreign Country

Immediate Family

South Korea

HEIGHTENED RISK

Unknown

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

(b) connections creating a potential conflict of interest

—

1.d

The Applicant has foreign contacts that could create the potential for foreign influence that could result in the compromise of classified information.

Against Applicant

Unspecified Foreign Relationship

Other

South Korea

HEIGHTENED RISK

Unknown

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

(b) connections creating a potential conflict of interest

—

1.e

The Applicant has foreign contacts that could create the potential for foreign influence that could result in the compromise of classified information.

Against Applicant

Unspecified Foreign Relationship

Other

South Korea

HEIGHTENED RISK

Unknown

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

(b) connections creating a potential conflict of interest

—

1.f

The Applicant has foreign contacts that could create the potential for foreign influence that could result in the compromise of classified information.

Against Applicant

Unspecified Foreign Relationship

Other

South Korea

HEIGHTENED RISK

Unknown

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

(b) connections creating a potential conflict of interest

—

2.a–3.c

6 sub-charges — specific text not stated in this decision (3 against, 3 for the applicant). (low confidence)

Mixed

Unspecified Foreign Relationship

Other

—

¶	Allegation	Finding	Conduct	Concealed Issue	Response	Disqualifying (¶16)	Mitigating applied (¶17)	Mitigation
3.a	The Applicant completed a Questionnaire for National Security Positions dated June 22, 2009. Question 26(g), of the application asked the Applicant if in the last seven years, have you had bills or debts turned over to a collection agency? The Applicant answered, “NO.” This was a false response. The Applicant failed to disclose that the debt set forth in allegation 2(c) was turned over to a collection agency for collection.	Against Applicant	Falsification Security FormFOUND DELIBERATE	Financial	Admitted	(a) deliberate omission, concealment, or falsification on a security form	—	—
3.b	Question 26(h), of the same application asked the Applicant if in the last seven years, have you had any accounts or credit card suspended, charged off, or cancelled for failing to pay as agreed? The Applicant answered, “NO.” This was a false response. The Applicant failed to disclose that the debts set forth in allegations 2(a) and 2(b) were suspended, charged off or cancelled for failing to pay as agreed.	Against Applicant	Falsification Security FormFOUND DELIBERATE	Financial	Admitted	(a) deliberate omission, concealment, or falsification on a security form	—	—
3.c	Question 26(m), of the same application asked the Applicant if in the last seven years, have you been over 180 days delinquent on any debts? The Applicant answered, “NO.” This was a false response. The Applicant failed to disclose the debts set forth under paragraph 2 of the SOR.	Against Applicant	Falsification Security FormFOUND DELIBERATE	Financial	Admitted	(a) deliberate omission, concealment, or falsification on a security form	—	—
3.d	Question 26(n), of the same application asked the Applicant, are you currently over 90 days delinquent on any debts? The Applicant answered, “NO.” This was a false response. The Applicant failed to disclose the debts set forth under paragraph 2 of the SOR.	Against Applicant	Falsification Security FormFOUND DELIBERATE	Financial	Admitted	(a) deliberate omission, concealment, or falsification on a security form	—	—
3.e	The Applicant admits that he made a conscientious decision not to reveal the true extent of his financial history on his security clearance application. He states that he was not truthful in answering the questions on the security clearance application concerning his finances because he was embarrassed. He knew he was indebted at the time he answered the questions erroneously.	Against Applicant	Lack of Candor in InterviewFOUND DELIBERATE	Financial	Admitted	(a) deliberate omission, concealment, or falsification on a security form	—	—
3.f	specific text not stated in this decision	Against Applicant	Unspecified Personal Conduct	—	Unknown	—	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

3.a

The Applicant completed a Questionnaire for National Security Positions dated June 22, 2009. Question 26(g), of the application asked the Applicant if in the last seven years, have you had bills or debts turned over to a collection agency? The Applicant answered, “NO.” This was a false response. The Applicant failed to disclose that the debt set forth in allegation 2(c) was turned over to a collection agency for collection.

Against Applicant

Falsification Security FormFOUND DELIBERATE

Financial

Admitted

(a) deliberate omission, concealment, or falsification on a security form

—

3.b

Question 26(h), of the same application asked the Applicant if in the last seven years, have you had any accounts or credit card suspended, charged off, or cancelled for failing to pay as agreed? The Applicant answered, “NO.” This was a false response. The Applicant failed to disclose that the debts set forth in allegations 2(a) and 2(b) were suspended, charged off or cancelled for failing to pay as agreed.

Against Applicant

Falsification Security FormFOUND DELIBERATE

Financial

Admitted

(a) deliberate omission, concealment, or falsification on a security form

—

3.c

Question 26(m), of the same application asked the Applicant if in the last seven years, have you been over 180 days delinquent on any debts? The Applicant answered, “NO.” This was a false response. The Applicant failed to disclose the debts set forth under paragraph 2 of the SOR.

Against Applicant

Falsification Security FormFOUND DELIBERATE

Financial

Admitted

(a) deliberate omission, concealment, or falsification on a security form

—

3.d

Question 26(n), of the same application asked the Applicant, are you currently over 90 days delinquent on any debts? The Applicant answered, “NO.” This was a false response. The Applicant failed to disclose the debts set forth under paragraph 2 of the SOR.

Against Applicant

Falsification Security FormFOUND DELIBERATE

Financial

Admitted

(a) deliberate omission, concealment, or falsification on a security form

—

3.e

The Applicant admits that he made a conscientious decision not to reveal the true extent of his financial history on his security clearance application. He states that he was not truthful in answering the questions on the security clearance application concerning his finances because he was embarrassed. He knew he was indebted at the time he answered the questions erroneously.

Against Applicant

Lack of Candor in InterviewFOUND DELIBERATE

Financial

Admitted

(a) deliberate omission, concealment, or falsification on a security form

—

3.f

specific text not stated in this decision

Against Applicant

Unspecified Personal Conduct

—

Unknown

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	a delinquent credit card debt in the amount of $12,000.00 $12,000	Against Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Claimed Debt Paid in Full
1.b	a credit card in the amount of $19,000.00 $19,000	Against Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Claimed Debt Paid in Full
1.c	a credit card in the amount of $12,000.00 $12,000	Against Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Claimed Debt Paid in Full
1.d–1.f	3 sub-charges — specific text not stated in this decision (against the applicant). (low confidence)	Against Applicant			—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

a delinquent credit card debt in the amount of $12,000.00

$12,000

Against Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Claimed

Debt Paid in Full

1.b

a credit card in the amount of $19,000.00

$19,000

Against Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Claimed

Debt Paid in Full

1.c

a credit card in the amount of $12,000.00

$12,000

Against Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Claimed

Debt Paid in Full

1.d–1.f

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

Against Applicant

—

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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

CONCLUSION

FORMAL FINDINGS

DECISION