ISCR Case 12-09445.h1

Case Headnote

ISCR Case No. 12-09445.h1

deniedFeb 28, 2013· Hon. Rita C. O'Brien· hearing

Summary

A 52-year-old naturalized U.S. citizen, originally from Pakistan, was denied a security clearance due to concerns under Guideline B (Foreign Influence) and Guideline F (Financial Considerations). The applicant's close family relationships in Pakistan, including relatives with military backgrounds, were identified as creating a heightened risk of foreign exploitation, manipulation, or coercion. This also raised concerns about potential conflicts of interest and the applicant's substantial business or financial interests in a foreign country.

Additionally, the applicant's financial history presented significant issues. He filed for Chapter 7 bankruptcy in May 2007, listing $1.6 million in secured claims and over $152,500 in unsecured claims. This bankruptcy stemmed partly from the unsuccessful purchase and closure of a hair salon, in which he invested approximately $265,000.

Currently, the applicant owes $10,419 in delinquent debt, comprising two small debts of $500 and $137, and a student loan of $9,782. These delinquencies appeared on credit reports in January, August, and November 2012. While the applicant testified about a partial payment on one small debt, no supporting documentation was provided for any payments. The judge concluded that these financial issues, combined with the foreign influence concerns, indicated a lack of reliability and judgment, leading to the denial of the security clearance.

Why the Applicant Was Denied

The applicant has close family ties in Pakistan, including relatives with military backgrounds, creating a heightened risk of foreign influence.
The applicant has significant delinquent debts totaling $10,419, indicating an inability or unwillingness to meet financial obligations.
The applicant's previous bankruptcy and current financial situation raise questions about his reliability and judgment.

Conditions Referenced

Disqualifying

AG ¶ 7(a)appliedContact with Foreign Family Members
AG ¶ 7(b)appliedPotential Conflict of Interest Due to Foreign Connections
AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
AG ¶ 19(c)appliedHistory of Not Meeting Financial Obligations

Key Rule Quoted

“A security clearance decision is intended only to resolve whether it is clearly consistent with the national interest for an applicant to either receive or continue to have access to classified information.”
— Department of the Navy v. Egan, 484 U.S. 518 (1988)

Procedural Posture

SOR issuedAug 14, 2012
Answer filedSep 11, 2012
Hearing heldFeb 21, 2013
Decision dateFeb 28, 2013

Cite For

Heightened Risk of Foreign Influence Due to Familial Ties Under Guideline B
Financial Irresponsibility and Its Impact on Security Clearance Under Guideline F
The Importance of Evaluating Foreign Contacts in Security Clearance Decisions.

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	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.	Against Applicant	Sibling in Foreign Country Immediate Family	Pakistan HEIGHTENED RISK	Admitted	(a) contact with a foreign family member/associate/friend creating a heightened risk of exploitation	—	—
1.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.	Against Applicant	Sibling in Foreign Country Immediate Family	Pakistan HEIGHTENED RISK	Admitted	(b) connections creating a potential conflict of interest	—	—
1.c	A substantial business, financial, or property interest in a foreign country, or in any foreign-owned or foreign-operated business, which could subject the individual to heightened risk of foreign influence or exploitation.	Against Applicant	Unspecified Foreign Relationship Other	—	Denied	(e) shared living quarters creating a heightened risk	—	—
1.d–1.f	3 sub-charges — specific text not stated in this decision (against the applicant). (low confidence)	Against Applicant	Unspecified Foreign Relationship Other	—		—	—	—

Allegation

Finding

Relationship

Country

Response

Disqualifying (¶7)

Mitigating applied (¶8)

Mitigation

1.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.

Against Applicant

Sibling in Foreign Country

Immediate Family

Pakistan

HEIGHTENED RISK

Admitted

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

—

1.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.

Against Applicant

Sibling in Foreign Country

Immediate Family

Pakistan

HEIGHTENED RISK

Admitted

(b) connections creating a potential conflict of interest

—

1.c

A substantial business, financial, or property interest in a foreign country, or in any foreign-owned or foreign-operated business, which could subject the individual to heightened risk of foreign influence or exploitation.

Against Applicant

Unspecified Foreign Relationship

Other

—

Denied

(e) shared living quarters creating a heightened risk

—

1.d–1.f

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

Against Applicant

Unspecified Foreign Relationship

Other

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
2.a	Applicant filed a Chapter 7 bankruptcy petition in May 2007. It included $1.6 million in secured claims, including several mortgages, auto loans, and a line of credit. The petition also listed unsecured claims of more than $152,500.	Against Applicant	Bankruptcy Filing	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
2.b	Applicant currently owes a total of $10,419 in delinquent debt: two small debts of $500 and $137, and a student loan of $9,782. $10,419	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
2.c	Many of Applicant’s debts stemmed from his purchase of a hair salon. He used a portion of the equity in his home to purchase the salon, and invested approximately $265,000. He owned it for about eight months. He accrued significant debt and tried unsuccessfully to sell it. He eventually closed the business, and filed the bankruptcy petition.	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
2.d	The delinquencies appear in Applicant's credit reports of January, August, and November 2012. He testified his wife made a $50 payment on the $137 debt, or intended to do so. However, he did not provide supporting documentation showing payments on that debt, or the others.	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

2.a

Applicant filed a Chapter 7 bankruptcy petition in May 2007. It included $1.6 million in secured claims, including several mortgages, auto loans, and a line of credit. The petition also listed unsecured claims of more than $152,500.

Against Applicant

Bankruptcy Filing

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

2.b

Applicant currently owes a total of $10,419 in delinquent debt: two small debts of $500 and $137, and a student loan of $9,782.

$10,419

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

2.c

Many of Applicant’s debts stemmed from his purchase of a hair salon. He used a portion of the equity in his home to purchase the salon, and invested approximately $265,000. He owned it for about eight months. He accrued significant debt and tried unsuccessfully to sell it. He eventually closed the business, and filed the bankruptcy petition.

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

2.d

The delinquencies appear in Applicant's credit reports of January, August, and November 2012. He testified his wife made a $50 payment on the $137 debt, or intended to do so. However, he did not provide supporting documentation showing payments on that debt, or the others.

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

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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

PROCEDURAL MATTERS

FINDINGS OF FACT

POLICIES

ANALYSIS

WHOLE PERSON CONCEPT

FORMAL FINDINGS

CONCLUSION

FOOTNOTES