ISCR Case 11-00587.h1

Case Headnote

ISCR Case No. 11-00587.h1

deniedSep 12, 2012· Hon. Martin H. Mogul· hearing

Summary

A 44-year-old defense contractor with a Master's Degree was denied a security clearance due to concerns under Guideline B (Foreign Influence), Guideline C (Foreign Preference), and Guideline F (Financial Considerations). The applicant had significant unresolved financial debts totaling over $252,000. While some debts were settled, including one for $28,116 through wage garnishment, another for $11,000, and several smaller debts ranging from $72 to $135, a substantial portion remained outstanding. The applicant planned to include multiple debts, including one for $183,000, in a bankruptcy filing, but the bankruptcy had not yet been filed.

Foreign influence concerns stemmed from the applicant's brother, a 49-year-old shoe salesman, who is a citizen and resident of Romania. They communicate monthly, and the applicant last saw him in 1991. Additionally, the applicant admitted to being a member of the Communist party in Romania from June to August 1989, stating it was a student requirement to secure employment. She testified she never participated in meetings and cut up her party card in December 1989 when the party dissolved.

The denial was primarily based on the applicant's unresolved debts exceeding $252,000, which raised questions about her financial reliability. Her attempts to file for bankruptcy did not mitigate these concerns as the filing was not complete. Furthermore, her husband's financial decisions were noted as contributing to the overall financial issues, indicating poor judgment.

Why the Applicant Was Denied

The applicant has significant unresolved debts totaling over $252,000, raising concerns about her financial reliability.
The applicant's financial problems were not mitigated by her attempts to file for bankruptcy, as the bankruptcy had not yet been filed.
The applicant's husband's financial decisions contributed to the financial issues, indicating poor judgment.

Conditions Referenced

Disqualifying

AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
AG ¶ 19(c)appliedHistory of Not Meeting Financial Obligations

Mitigating

AG ¶ 20(b)rejectedConditions Beyond the Person's ControlThe applicant's financial issues were not solely due to circumstances beyond her control.
AG ¶ 20(c)rejectedReceived Financial CounselingWhile the applicant received counseling, there were no clear indications that her financial problems were being resolved.
AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsMost of the applicant's significant debts remain unresolved.

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 issuedOct 31, 2011
Answer filedNov 23, 2011Applicant requested decision on written record.
Hearing heldMay 16, 2012Hearing conducted as scheduled.
Decision dateSep 12, 2012

Cite For

Denial of Security Clearance Due to Unresolved Financial Obligations Under Guideline F
Foreign Influence Concerns Under Guideline B Related to Family Ties Abroad
Insufficient Mitigation of Financial Issues Despite Counseling Efforts 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
2.a	It is alleged in the SOR that Applicant’s brother is a citizen and resident of Romania. Applicant admitted this allegation in her RSOR. Applicant testified that her 49 year old brother has never worked for the Romanian Government and he works selling shoes. They communicate once a month. She last saw her brother in 1991 when she went to visit Romania with her daughter and stepson. (Tr at 60-62.)	For Applicant	Sibling in Foreign Country Immediate Family	Romania	Admitted	—	(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

It is alleged in the SOR that Applicant’s brother is a citizen and resident of Romania. Applicant admitted this allegation in her RSOR. Applicant testified that her 49 year old brother has never worked for the Romanian Government and he works selling shoes. They communicate once a month. She last saw her brother in 1991 when she went to visit Romania with her daughter and stepson. (Tr at 60-62.)

For Applicant

Sibling in Foreign Country

Immediate Family

Romania

Admitted

—

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

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶10)	Mitigating applied (¶11)	Mitigation
3.a	It is alleged in the SOR that Applicant was once a member of the Communist party in Romania. Applicant admitted this allegation in her RSOR. She further wrote that she was a member for only a few months, and she joined when she was a student as it was required to get a job. Applicant testified that she had been a member of the Communist party from June to August 1989. She averred that she never took part in any meetings during the period that she was a member. When the Communist party was gone from Romania in December 1989, she simply cut up her Communist party card and she had no further contact with the party since that time. (Tr at 67-70.)	For Applicant	Unspecified Foreign Preference	Admitted	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶10)

Mitigating applied (¶11)

Mitigation

3.a

It is alleged in the SOR that Applicant was once a member of the Communist party in Romania. Applicant admitted this allegation in her RSOR. She further wrote that she was a member for only a few months, and she joined when she was a student as it was required to get a job. Applicant testified that she had been a member of the Communist party from June to August 1989. She averred that she never took part in any meetings during the period that she was a member. When the Communist party was gone from Romania in December 1989, she simply cut up her Communist party card and she had no further contact with the party since that time. (Tr at 67-70.)

For Applicant

Unspecified Foreign Preference

Admitted

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	This overdue debt is cited in the SOR in the amount of $6,313. Applicant testified that she plans to file a bankruptcy. (Tr at 51.) Applicant plans to list this debt as part of her bankruptcy. I find that this debt has not yet been resolved. $6,313	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.b	This overdue debt is cited in the SOR in the amount of $10,000. Applicant plans to list this debt as part of her bankruptcy. I find that this debt has not yet been resolved. $10,000	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.c	This overdue debt is cited in the SOR in the amount of $23,000. Applicant plans to list this debt as part of her bankruptcy. I find that this debt has not yet been resolved. $23,000	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.d	This overdue debt is cited in the SOR in the amount of $7,172. Applicant plans to list this debt as part of her bankruptcy. I find that this debt has not yet been resolved. $7,172	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.e	This overdue debt is cited in the SOR in the amount of $7,838. Applicant plans to list this debt as part of her bankruptcy. I find that this debt has not yet been resolved. $7,838	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.f	This overdue debt is cited in the SOR in the amount of $11,000. Applicant testified that she had paid $123.73 to settle this debt. (Tr at 56-67.) Exhibit K establishes that this debt was paid on November 11, 2011. $11,000	For Applicant	Unspecified Financial	Admitted	—	—	—
1.g	This overdue debt is cited in the SOR in the amount of $183,000. Applicant plans to list this debt as part of her bankruptcy. I find that this debt has not yet been resolved. $183,000	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.h	This overdue debt is cited in the SOR in the amount of $4,688. Applicant plans to list this debt as part of her bankruptcy. I find that this debt has not yet been resolved. $4,688	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.i	This overdue debt is cited in the SOR in the amount of $10,000. Applicant plans to list this debt as part of her bankruptcy. I find that this debt has not yet been resolved. $10,000	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.j	This overdue debt is cited in the SOR in the amount of $28,116. In her RSOR, Applicant denied this allegation. She testified that she had paid this debt by means of a wage garnishment. (Tr at 48-50.) Exhibit J shows that Applicant’s wages were garnished from June 2010 until October 2011, and the debt was paid. I find that the debt was paid in full. $28,116	For Applicant	Unspecified Financial	Denied	—	—	—
1.k	This overdue debt is cited in the SOR in the amount of $135. At the hearing, Applicant testified that she paid this debt in full. (Tr at 45-48.) She did not have any documentation at the time of the hearing to prove that this debt had been paid, so the record remained open until June 8, 2012, to give her an opportunity to prove that this bill had been paid. Exhibit T establishes that this debt was paid in full by June 5, 2012. $135	For Applicant	Unspecified Financial	Admitted	—	—	—
1.l	This overdue debt is cited in the SOR in the amount of $72. Applicant testified that she paid this debt in full. (Tr at 45-48.) The record remained open to give her an opportunity to prove that this bill had been paid. Exhibit R establishes that this debt was paid in full by June 5, 2012. $72	For Applicant	Unspecified Financial	Admitted	—	—	—
1.m	This overdue debt is cited in the SOR in the amount of $116. Applicant testified that she paid this debt in full. (Tr at 45-48.) The record remained open to give her an opportunity to prove that this bill had been paid. Exhibit S establishes that this debt was paid in full by December 6, 2011. $116	For Applicant	Unspecified Financial	Admitted	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

This overdue debt is cited in the SOR in the amount of $6,313. Applicant testified that she plans to file a bankruptcy. (Tr at 51.) Applicant plans to list this debt as part of her bankruptcy. I find that this debt has not yet been resolved.

$6,313

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.b

This overdue debt is cited in the SOR in the amount of $10,000. Applicant plans to list this debt as part of her bankruptcy. I find that this debt has not yet been resolved.

$10,000

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.c

This overdue debt is cited in the SOR in the amount of $23,000. Applicant plans to list this debt as part of her bankruptcy. I find that this debt has not yet been resolved.

$23,000

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.d

This overdue debt is cited in the SOR in the amount of $7,172. Applicant plans to list this debt as part of her bankruptcy. I find that this debt has not yet been resolved.

$7,172

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.e

This overdue debt is cited in the SOR in the amount of $7,838. Applicant plans to list this debt as part of her bankruptcy. I find that this debt has not yet been resolved.

$7,838

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.f

This overdue debt is cited in the SOR in the amount of $11,000. Applicant testified that she had paid $123.73 to settle this debt. (Tr at 56-67.) Exhibit K establishes that this debt was paid on November 11, 2011.

$11,000

For Applicant

Unspecified Financial

Admitted

—

1.g

This overdue debt is cited in the SOR in the amount of $183,000. Applicant plans to list this debt as part of her bankruptcy. I find that this debt has not yet been resolved.

$183,000

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.h

This overdue debt is cited in the SOR in the amount of $4,688. Applicant plans to list this debt as part of her bankruptcy. I find that this debt has not yet been resolved.

$4,688

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.i

This overdue debt is cited in the SOR in the amount of $10,000. Applicant plans to list this debt as part of her bankruptcy. I find that this debt has not yet been resolved.

$10,000

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.j

This overdue debt is cited in the SOR in the amount of $28,116. In her RSOR, Applicant denied this allegation. She testified that she had paid this debt by means of a wage garnishment. (Tr at 48-50.) Exhibit J shows that Applicant’s wages were garnished from June 2010 until October 2011, and the debt was paid. I find that the debt was paid in full.

$28,116

For Applicant

Unspecified Financial

Denied

—

1.k

This overdue debt is cited in the SOR in the amount of $135. At the hearing, Applicant testified that she paid this debt in full. (Tr at 45-48.) She did not have any documentation at the time of the hearing to prove that this debt had been paid, so the record remained open until June 8, 2012, to give her an opportunity to prove that this bill had been paid. Exhibit T establishes that this debt was paid in full by June 5, 2012.

$135

For Applicant

Unspecified Financial

Admitted

—

1.l

This overdue debt is cited in the SOR in the amount of $72. Applicant testified that she paid this debt in full. (Tr at 45-48.) The record remained open to give her an opportunity to prove that this bill had been paid. Exhibit R establishes that this debt was paid in full by June 5, 2012.

$72

For Applicant

Unspecified Financial

Admitted

—

1.m

This overdue debt is cited in the SOR in the amount of $116. Applicant testified that she paid this debt in full. (Tr at 45-48.) The record remained open to give her an opportunity to prove that this bill had been paid. Exhibit S establishes that this debt was paid in full by December 6, 2011.

$116

For Applicant

Unspecified Financial

Admitted

—

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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