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ISCR Case 01-10818.h1 — CASE

ISCR Case 01-10818.h1granted

Case Headnote

ISCR Case No. 01-10818.h1

grantedApr 29, 2002· Hon. Joseph Testan· hearing

Summary

This case involved a 36-year-old merchant seaman seeking a security clearance, with concerns raised under Guideline C (Foreign Preference) and Guideline F (Financial Considerations). Allegations included the applicant's exercise of dual citizenship and possession of a foreign passport. Financial concerns stemmed from an unaware $76 debt, which he paid in September 2000, and a student loan debt that was not being repaid as agreed. The applicant attributed the student loan issue to "laziness," "irresponsibility," "immaturity," and extensive travel for work.

Disqualifying conditions were raised under C.1, C.2, and F.1. However, the applicant took immediate steps to mitigate these concerns. He renounced his foreign citizenship and surrendered his foreign passport after being advised they posed a security risk, demonstrating a clear preference for the United States.

Regarding financial matters, the applicant addressed his obligations, including resolving the $76 debt and becoming current on all payments for his student loan. Mitigating conditions C.1, C.4, and F.6 were applied, as the applicant showed responsibility in resolving his financial issues. Consequently, the judge found that the applicant's actions successfully mitigated the security concerns under both guidelines, and the security clearance was GRANTED.

Why the Applicant Prevailed

The applicant took immediate steps to renounce his foreign citizenship and surrender his foreign passport upon learning of the security concerns.
He demonstrated a clear preference for the United States over the foreign country.
The applicant has shown responsibility in addressing his financial obligations and is current on all payments.

Conditions Referenced

Disqualifying

C.1raisedDual Citizenship
C.2raisedPossession of a Foreign Passport
F.1raisedHistory of Not Meeting Financial Obligations

Mitigating

C.1rejectedDual Citizenship Based Solely on Parents' Citizenship
C.4appliedWillingness to Renounce Dual Citizenship
F.6appliedGood-faith Effort to Repay Overdue Creditors

Key Rule Quoted

“"In light of all the circumstances presented by the record in this case, it is clearly consistent with the national interest to grant or continue a security clearance for applicant."”

Procedural Posture

SOR issuedDec 18, 2001
Answer filedJan 18, 2002
Hearing heldApr 9, 2002
Decision dateApr 29, 2002

Cite For

Mitigation of Foreign Preference Concerns Through Renunciation of Citizenship
Responsibility in Addressing Financial Obligations
Demonstrating a Clear Preference for U.S. Citizenship Over Foreign Citizenship

Editorial summary generated for research. Not legal advice; not a prediction. Verify against the full decision before relying on any quoted language.

Standardized Decision Profile

SEAD-4 Guideline C (Foreign Preference) · descriptive summary of a decided case

Posture: Decision on RecordDecided: granted

The applicant, a U.S. citizen, applied for and received foreign citizenship and a passport from FC. However, he expressed that he did not prefer FC over the United States and took steps to renounce his foreign citizenship and surrender his passport upon learning it would affect his security clearance. The judge found that the applicant's actions were consistent with U.S. interests, ruling in favor of the applicant on all allegations under Guideline C.

¶	Allegation	Finding	Type	Response	Disqualifying (¶10)	Mitigating applied (¶11)	Mitigation
1.a	The exercise of dual citizenship.	For Applicant	Foreign Citizenship Acquisition or Application	Admitted	—	(a) the foreign citizenship is not in conflict with U.S. national security interests	—
1.b	Possession and/or use of a foreign passport.	For Applicant	Foreign Passport Possession or Use	Admitted	—	(a) the foreign citizenship is not in conflict with U.S. national security interests (d) the exercise of the rights/privileges/obligations of foreign citizenship occurred before the individual became a U.S. citizen	—

Descriptive standardized rendering of a decided public case (Guideline C). The verbatim source decision is shown in full below.

Standardized Decision Profile

SEAD-4 Guideline F · descriptive summary of a decided case

Posture: Decision on RecordDecided: granted

The judge found that the applicant had a history of financial irresponsibility, particularly regarding a student loan debt. However, the applicant took steps to rectify the situation by entering into a repayment agreement and is currently meeting his financial obligations, leading to a favorable decision under Guideline F.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant was advised of a $76.00 debt that he was unaware of. He tracked down the collection agency and paid the debt in September 2000 even though the collection agency was unable to tell him what the debt was for. $76	For Applicant	Unspecified Financial	Unknown	—	—	—
1.b	The second debt was a student loan debt. Applicant had not been repaying the debt as agreed. His failure to honor the terms of the debt agreement was not the result of being financially overextended; rather, it was the result of "a little laziness," "irresponsibility" and "immaturity," and his extended travel in connection with his merchant seaman duties. $15,946	For Applicant	Student Loan Debt	Admitted	(a) inability to satisfy debts	(g) arrangements made with the tax authority; in compliance	Claimed Debt Paid in Full

Descriptive standardized rendering of a decided public case (Guideline F). The verbatim source decision is shown in full below.

Full decision

The complete, official text — footnotes and signatures included — is in the original PDF.

Decision text, by section

DEFENSE OFFICE OF HEARINGS AND APPEALS

HEARING

APPEARANCES

DATE: April 29, 2002

In Re:

------------------

SSN: -------------

Applicant for Security Clearance

ISCR Case No. 01-10818

DECISION OF ADMINISTRATIVE JUDGE

JOSEPH TESTAN

On December 18, 2001, the Defense Office of Hearings and Appeals (DOHA), pursuant to Executive Order 10865 and Department of Defense Directive 5220.6 (Directive), dated January 2, 1992, (as administratively reissued on April 20, 1999), issued a Statement of Reasons (SOR) to applicant which detailed reasons why DOHA could not make the preliminary affirmative finding under the Directive that it is clearly consistent with the national interest to grant or continue a security clearance for applicant and recommended referral to an Administrative Judge to determine whether clearance should be denied or revoked.

Applicant responded to the SOR in writing on January 18, 2002. A Notice of Hearing was issued on March 11, 2002. The case was assigned to the undersigned on March 22, 2002, and the hearing was held on April 9, 2002. The transcript was received on April 19, 2002.

FINDINGS OF FACT

Applicant is a thirty-six year old merchant seaman. He is seeking a security clearance in connection with his employment.

Guideline C

Applicant was born and raised in the United States. In the early 1990s, he learned that because of his FC ancestry, he could apply for FC citizenship. In 1992, he applied for and received FC citizenship. In a signed sworn statement that he gave to the Defense Investigative Service (DIS) in August 2000, he stated that he did so for three reasons: (1) For bragging rights within his family, (2) to be able to travel more freely, and (3) he could travel in a country that was hostile to the United States if he chose to do so (Exhibit 2). By applying for FC citizenship he was not expressing a preference for FC over the United States. In fact, if in order to obtain FC citizenship he had to either renounce his United States citizenship or take an oath of allegiance to FC, he would not have applied for FC citizenship (TR at 24- 25). He would not bear arms for FC. He would, however, bear arms against FC if the United States and FC were at war (TR at 25).

In 1994, applicant applied for and received an FC passport. He saw the FC passport "as a tool to travel, to make traveling easier" (TR at 40).

Applicant applied for a security clearance in September 1999. On the security clearance application (SCA) that he submitted, he disclosed that he was a dual citizen and that he possessed an FC passport (Exhibit 1). In August 2000, he was interviewed by a Special Agent with the DIS. At the time of the interview, applicant was not advised that his FC citizenship or his possession of an FC passport would pose a problem with his security clearance request (TR at 27).

In December 2001, applicant received the SOR and learned for the first time that his FC citizenship and possession of the FC passport would require a denial of his clearance request. He then took immediate steps to renounce his FC citizenship and to surrender the FC passport. Exhibit C confirms that (1) he surrendered his passport to an FC consulate, (2) he filed the appropriate paperwork to renounce his FC citizenship, (3) the paperwork has been forwarded to FC by the FC consulate, and (4) his renunciation of FC citizenship is an "irreversible process."

Guideline F

When applicant was interviewed by the DIS in August 2000, the issue of his financial condition, specifically two outstanding debts, was discussed. He was advised of a $76.00 debt that he was unaware of. He tracked down the collection agency and paid the debt in September 2000 even though the collection agency was unable to tell him what the debt was for (TR at 31-33, 54; Exhibit D). The second debt was a student loan debt. Applicant had not been repaying the debt as agreed. His failure to honor the terms of the debt agreement was not the result of being financially overextended; rather, it was the result of "a little laziness," "irresponsibility" and "immaturity," and his extended travel in connection with his merchant seaman duties (TR at 36, 57). In May 2001, he signed a Default Rehabilitation Agreement with the creditor requiring him to begin making $100.00 monthly payments on the $15,946.49 debt. By making the agreed-upon payments, as well as some extra payments, the debt has been reduced to $12,783.74 as of January 2002 (Exhibit E). At present, he is current on all of his financial obligations (TR at 60, 77-78). Applicant's current income is sufficient to cover his current expenses, including the $100.00 payment (TR at 71).

POLICIES

Enclosure 2 of the Directive sets forth Guidelines (divided into conditions that could raise a security concern and conditions that could mitigate security concerns) which must be followed by the Administrative Judge. Based on the foregoing Findings of Fact, the following Disqualifying Factors and Mitigating Factors are applicable:

Foreign Preference

Conditions that could raise a security concern:

1. The exercise of dual citizenship.

2. Possession and/or use of a foreign passport.

Conditions that could mitigate security concerns:

1. Dual citizenship is based solely on parents' citizenship.

4. Individual has expressed a willingness to renounce dual citizenship.

Financial Considerations

Conditions that could raise a security concern:

1. A history of not meeting financial obligations. Conditions that could mitigate security concerns:

6. The individual initiated a good-faith effort to repay overdue

creditors or otherwise resolve debts.

CONCLUSION

Applicant was born and raised in the United States. By virtue of his FC ancestry, he was eligible to obtain FC citizenship and an FC passport. In 1992, applicant applied for and received FC citizenship, and in 1994 he applied for and received an FC passport. He took this action because, among other reasons, he thought it would make foreign travel easier for him. In his mind, since dual citizenship was legal under United States law, there was nothing improper about obtaining FC citizenship or an FC passport. Once applicant learned that his possession of FC citizenship and an FC passport would prevent him from obtaining a security clearance, he took immediate steps to renounce his FC citizenship and to surrender his FC passport. As of the date of this decision, his FC passport has been surrendered, and his application to renounce his FC citizenship is pending with FC. Since his decision to renounce his FC citizenship is irreversible, he will not be able to regain his FC citizenship in the future. Based on these facts, and the fact that applicant has always clearly preferred the United States over FC, Guideline C is found for applicant.

With respect to his finances, applicant acted irresponsibly in the handling of his student loan debt. To his credit, however, he has accepted responsibility for his actions, and has remedied the situation by entering into a new agreement with the creditor and by honoring that agreement. In view of these facts, and the fact that applicant's current financial condition is stable, Guideline F is found for applicant.

FORMAL FINDINGS

PARAGRAPH 1: FOR THE APPLICANT

PARAGRAPH 2: FOR THE APPLICANT

DECISION

In light of all the circumstances presented by the record in this case, it is clearly consistent with the national interest to grant or continue a security clearance for applicant.

____________________________

Joseph Testan

Administrative Judge

FOOTNOTES

FOR GOVERNMENT Martin H. Mogul, Department Counsel FOR APPLICANT Karen L. Manos, Attorney at Law