ISCR Case 12-08929.h1

Case Headnote

ISCR Case No. 12-08929.h1

grantedJun 29, 2016· Hon. David M. White· hearing

Summary

A 55-year-old retired U.S. Air Force E-7 and defense contractor was granted a security clearance despite concerns under Guideline B (Foreign Influence) and Guideline F (Financial Considerations). The Statement of Reasons (SOR) alleged several delinquent debts, including a $10,602 past-due mortgage, an $1,801 department store credit card debt in his wife's name, a $19,396 judgment from a line of credit, a $42,830 delinquent secured credit card debt, and a $387 debt to a home supply store.

Additionally, foreign influence concerns were raised regarding his wife's connections to the Philippines, specifically contact with foreign family members, potential conflicts of interest due to foreign connections, and sharing living quarters with a person whose relationship could create a heightened risk of foreign inducement.

The judge determined that the applicant had taken effective steps to resolve his delinquent debts, noting that many financial issues stemmed from circumstances beyond his control, such as the housing market crash. Furthermore, it was established that his wife's connections to the Philippines did not pose a heightened risk of foreign influence. Based on the resolution of financial delinquencies and the nature of his foreign connections, the security clearance was granted.

Why the Applicant Prevailed

The applicant took effective steps to address and resolve his delinquent debts.
The applicant's financial issues were largely due to circumstances beyond his control, such as the housing market crash.
The applicant's wife's connections to the Philippines did not create a heightened risk of foreign influence.

Conditions Referenced

Disqualifying

F.19(a)raisedInability or Unwillingness to Satisfy Debts
F.19(c)raisedA History of Not Meeting Financial Obligations
B.7(a)raisedContact with a Foreign Family Member
B.7(b)raisedConnections to a Foreign Person That Create a Potential Conflict of Interest

Mitigating

F.20(a)appliedBehavior Happened Long Ago or Occurred Under Circumstances Unlikely to Recur
F.20(b)appliedConditions Resulting in Financial Problems Were Largely Beyond the Person's Control
F.20(c)appliedReceiving Counseling or Clear Indications That the Problem Is Being Resolved
F.20(d)appliedGood-faith Effort to Repay Overdue Creditors
B.8(a)appliedNature of Relationships with Foreign Persons Unlikely to Create a Conflict of Interest
B.8(b)appliedNo Conflict of Interest Due to Deep and Longstanding Relationships in the U.S.

Key Rule Quoted

“An applicant is not required to show that [he] has completely paid off [his] indebtedness, only that [he] has established a reasonable plan to resolve [his] debts and has ‘taken significant actions to implement that plan.’”
— ISCR Case No. 06-12930 at 2 (App. Bd. Mar. 17, 2008)

Procedural Posture

SOR issuedFeb 5, 2015
Answer filedMar 19, 2015Applicant initially requested a decision on the administrative record.
Hearing heldDec 8, 2015
Decision dateJun 29, 2016

Cite For

Mitigation of Financial Issues Under Guideline F Due to Circumstances Beyond Control
Rebuttable Presumption of Foreign Influence Concerns Under Guideline B When Relationships Are Minimal
Significant Actions Required to Resolve Debts for 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	Contact with a foreign family member, business or professional associate, friend, or other person who is a citizen of or resident in a foreign country if that contact creates a heightened risk of foreign exploitation, inducement, manipulation, pressure, or coercion.	For Applicant	Spouse Dual or Foreign Citizen Immediate Family	Philippines	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	Connections 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.	For Applicant	Spouse Dual or Foreign Citizen Immediate Family	Philippines	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	Sharing living quarters with a person or persons, regardless of citizenship status, if that relationship creates a heightened risk of foreign inducement, manipulation, pressure, or coercion.	For Applicant	Cohabitation with Foreign National Immediate Family	Philippines	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

Contact with a foreign family member, business or professional associate, friend, or other person who is a citizen of or resident in a foreign country if that contact creates a heightened risk of foreign exploitation, inducement, manipulation, pressure, or coercion.

For Applicant

Spouse Dual or Foreign Citizen

Immediate Family

Philippines

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

Connections 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.

For Applicant

Spouse Dual or Foreign Citizen

Immediate Family

Philippines

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

Sharing living quarters with a person or persons, regardless of citizenship status, if that relationship creates a heightened risk of foreign inducement, manipulation, pressure, or coercion.

For Applicant

Cohabitation with Foreign National

Immediate Family

Philippines

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	A November 2009 credit report entry showed his first mortgage payments to be past due in the amount of $10,602. $10,602	For Applicant	Mortgage or Home Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(a) behavior happened long ago / infrequent / unlikely to recur (b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Claimed Other
1.b	The $1,801 debt alleged in SOR ¶ 1.b involved a department store credit card that was issued in Applicant’s wife’s name. $1,801	For Applicant	Credit Card Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.c	SOR ¶ 1.c alleges a judgment entered against Applicant in August 2009 for the $19,396 balance due on a line of credit loan he and his wife had taken out against the equity in their former home. $19,396	For Applicant	Judgment Against Applicant	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor
1.d	The $42,830 secured credit card (home equity line of credit) debt alleged in SOR ¶ 1.d was opened in May 2006 and became delinquent in January 2009. $42,830	For Applicant	Mortgage or Home Loan 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	Documented Debt Paid in Full
1.e	SOR ¶ 1.e alleges a $387 debt to a chain home and building supply store. $387	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

A November 2009 credit report entry showed his first mortgage payments to be past due in the amount of $10,602.

$10,602

For Applicant

Mortgage or Home Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(a) behavior happened long ago / infrequent / unlikely to recur

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

(c) received/receiving counseling; problem being resolved

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

Claimed

Other

1.b

The $1,801 debt alleged in SOR ¶ 1.b involved a department store credit card that was issued in Applicant’s wife’s name.

$1,801

For Applicant

Credit Card Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Documented

Debt Paid in Full

1.c

SOR ¶ 1.c alleges a judgment entered against Applicant in August 2009 for the $19,396 balance due on a line of credit loan he and his wife had taken out against the equity in their former home.

$19,396

For Applicant

Judgment Against Applicant

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Documented

Payment Plan with Creditor

1.d

The $42,830 secured credit card (home equity line of credit) debt alleged in SOR ¶ 1.d was opened in May 2006 and became delinquent in January 2009.

$42,830

For Applicant

Mortgage or Home Loan 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

Documented

Debt Paid in Full

1.e

SOR ¶ 1.e alleges a $387 debt to a chain home and building supply store.

$387

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Documented

Debt Paid in Full

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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