But Escalante had a secret that sets him apart from his fellow veterans–he joined the Army using a fake green card he bought on the streets of Seattle for $50. Now the 19-year-old, just 4 when his parents illegally entered the United States from Mexico, faces discharge from the Army and deportation from the country for which he went to war. His family may also be deported.

“It’s a loyalty issue,” says a senior Army officer familiar with the case. “He has served us honorably but enlisted under false pretenses. The Army is between a rock and a hard place, legally.” Escalante, awaiting his fate at Fort Stewart, Ga., hopes to finish the four-year tour he signed up for in August 2002. “The Army is worried I will say bad things about them,” he says, “but I have nothing bad to say.”

Escalante’s case raises a tangle of issues for the Pentagon. While the Army is required to discharge him, it is in no hurry to do so and would like to see the loyal GI become a citizen. At the same time, it doesn’t want to reward fraud and have other illegal aliens get the idea that joining the military with bogus documents is a shortcut to citizenship. National security is another concern. Escalante’s experience shows how easy it might be for potential terrorists to join the military illegally and learn combat tactics and lethal skills.

Tightening the recruitment process could address these problems. Now the recruiter who first interviews a potential soldier initially determines eligibility. He runs local and state police checks and compares green cards with birth certificates or passports; if something seems fishy, the recruiter contacts the Bureau of Citizenship and Immigration Services (BCIS). Next, the documents are reviewed by the Department of Defense, and the FBI runs a fingerprint check. Though there are more than 37,000 green-card holders in the military today, the DoD office that verifies citizenship doesn’t interface with the Social Security Administration or BCIS databases. The plan is for them to link up by the end of the year, but officials expect delays.

The Army learned of Escalante’s illegal status after his parents applied for permanent residency under a special program for illegal aliens who have been in the United States for more than 10 years. While making their case, they proudly told the immigration judge they had a son serving in Iraq. The judge ruled against them, and if they lose their appeal, which is pending, they will be deported, as will their children under 21–Juan and his younger brother and sister.

Escalante’s civilian lawyer, Glen Prior, argues that the soldier qualifies for citizenship under a Bush executive order issued last year that waived residency requirements for noncitizens on active military duty during wartime. As worded, Prior says, the order makes no distinction between legal and illegal immigrants. A favorable BCIS ruling for Escalante, Prior hopes, will not only enable the veteran to stay in the Army, it might also lead to a similar decision for Juan’s parents. Then the Escalantes could begin a new chapter in their lives–as Americans.