ISCR Case 20-01575

Case Headnote

ISCR Case No. 20-01575

grantedJun 30, 2022· Hon. Wilford H. Ross· hearing

Summary

A 53-year-old American citizen and founder of a defense contractor was granted a security clearance despite initial concerns under Guideline B (Foreign Influence). The Statement of Reasons highlighted the applicant's spouse's relatives in Taiwan, who hold dual citizenship with Taiwan and Canada. Additionally, the applicant owned property in Taiwan valued at approximately $1,000,000 and held multiple foreign bank accounts across several countries. These accounts included two in Foreign Country A totaling $713,278, one in Foreign Country B at $495,127, one in Foreign Country C at $387, one in Foreign Country D at $6,915, three in Taiwan totaling $115,893, and one in China at $77. The applicant also established a company in Taiwan around 2014 that has no assets or business operations.

Disqualifying conditions were raised under AG ¶ 7(a), AG ¶ 7(b), AG ¶ 7(e), and AG ¶ 7(f). However, the judge applied mitigating conditions under AG ¶ 8(a), AG ¶ 8(b), AG ¶ 8(c), AG ¶ 8(e), and AG ¶ 8(f).

The clearance was granted because the applicant demonstrated minimal and estranged contact with family in Taiwan, thereby reducing foreign influence risks. Furthermore, the applicant's foreign financial interests were primarily in friendly nations, with these assets representing only 7% of his total wealth. The applicant also showed a commitment to national security and adherence to reporting requirements.

Why the Applicant Prevailed

The applicant's family relationships in Taiwan were minimal and estranged, reducing the risk of foreign influence.
The applicant's financial interests were primarily in friendly nations, with foreign assets constituting only 7% of his total wealth.
The applicant demonstrated a commitment to national security and compliance with reporting requirements.

Conditions Referenced

Disqualifying

AG ¶ 7(a)raisedContact with Foreign Family Members
AG ¶ 7(b)raisedConnections to Foreign Persons Creating Potential Conflict of Interest
AG ¶ 7(e)notedShared Living Quarters with Foreign Persons
AG ¶ 7(f)raisedSubstantial Business, Financial, or Property Interests in a Foreign Country

Mitigating

AG ¶ 8(a)appliedNature of Relationships with Foreign Persons Unlikely to Create Conflict
AG ¶ 8(b)appliedMinimal Conflict of Interest Due to Strong U.S. Ties
AG ¶ 8(c)appliedCasual and Infrequent Contact with Foreign Citizens
AG ¶ 8(e)appliedPrompt Compliance with Reporting Requirements
AG ¶ 8(f)appliedRoutine Nature of Foreign Financial Interests Unlikely to Result in Conflict

Key Rule Quoted

“The protection of the national security is the paramount consideration.”

Procedural Posture

SOR issuedApr 29, 2021
Answer filedMay 24, 2021
Hearing heldMar 24, 2022
Decision dateJun 30, 2022

Cite For

Mitigation of Foreign Influence Concerns Under Guideline B
Evaluation of Family Ties and Financial Interests in Security Clearance Cases
Importance of Compliance with Reporting Requirements in Security Clearance Determinations

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	Applicant has mitigated the concerns related to foreign influence raised by the presence of his spouse’s relatives in the Republic of China – Taiwan (Taiwan), and his foreign financial interests.	For Applicant	In Law in Foreign Country Immediate Family	Taiwan HEIGHTENED RISK	Admitted	—	—	Claimed Other
1.b	Applicant's in-laws are dual citizens of Taiwan and Canada.	For Applicant	In Law in Foreign Country Immediate Family	Taiwan HEIGHTENED RISK	Admitted	—	—	Claimed Other
1.c	Applicant purchased property in Taiwan worth approximately $1,000,000.	For Applicant	Foreign Real Estate Financial or Property Interest	Taiwan HEIGHTENED RISK	Admitted	—	—	Claimed Other
1.d	Applicant has two bank accounts in Foreign Country A with a combined value of $713,278.	For Applicant	Foreign Bank Account or Investment Financial or Property Interest	Foreign Country A	Denied with Explanation	—	—	Claimed Other
1.e	Applicant has one bank account in Foreign Country B valued at $495,127.	For Applicant	Foreign Bank Account or Investment Financial or Property Interest	Foreign Country B	Admitted	—	—	Claimed Other
1.f	Applicant has one bank account in Foreign Country C valued at $387.	For Applicant	Foreign Bank Account or Investment Financial or Property Interest	Foreign Country C	Admitted	—	—	Claimed Other
1.g	Applicant has one bank account in Foreign Country D valued at $6,915.	For Applicant	Foreign Bank Account or Investment Financial or Property Interest	Foreign Country D	Denied with Explanation	—	—	Claimed Other
1.h	Applicant has three bank accounts in Taiwan with a combined value of $115,893.	For Applicant	Foreign Bank Account or Investment Financial or Property Interest	Taiwan HEIGHTENED RISK	Admitted	—	—	Claimed Other
1.i	Applicant has one bank account in China valued at $77.	For Applicant	Foreign Bank Account or Investment Financial or Property Interest	China HEIGHTENED RISK	Denied with Explanation	—	—	Claimed Other
1.j	Applicant established a company in Taiwan in approximately 2014 that has no assets and does no business.	For Applicant	Foreign Employment or Pension Business or Professional Associate	Taiwan HEIGHTENED RISK	Admitted	—	—	Claimed Other

Allegation

Finding

Relationship

Country

Response

Disqualifying (¶7)

Mitigating applied (¶8)

Mitigation

1.a

Applicant has mitigated the concerns related to foreign influence raised by the presence of his spouse’s relatives in the Republic of China – Taiwan (Taiwan), and his foreign financial interests.

For Applicant

In Law in Foreign Country

Immediate Family

Taiwan

HEIGHTENED RISK

Admitted

—

Claimed

Other

1.b

Applicant's in-laws are dual citizens of Taiwan and Canada.

For Applicant

In Law in Foreign Country

Immediate Family

Taiwan

HEIGHTENED RISK

Admitted

—

Claimed

Other

1.c

Applicant purchased property in Taiwan worth approximately $1,000,000.

For Applicant

Foreign Real Estate

Financial or Property Interest

Taiwan

HEIGHTENED RISK

Admitted

—

Claimed

Other

1.d

Applicant has two bank accounts in Foreign Country A with a combined value of $713,278.

For Applicant

Foreign Bank Account or Investment

Financial or Property Interest

Foreign Country A

Denied with Explanation

—

Claimed

Other

1.e

Applicant has one bank account in Foreign Country B valued at $495,127.

For Applicant

Foreign Bank Account or Investment

Financial or Property Interest

Foreign Country B

Admitted

—

Claimed

Other

1.f

Applicant has one bank account in Foreign Country C valued at $387.

For Applicant

Foreign Bank Account or Investment

Financial or Property Interest

Foreign Country C

Admitted

—

Claimed

Other

1.g

Applicant has one bank account in Foreign Country D valued at $6,915.

For Applicant

Foreign Bank Account or Investment

Financial or Property Interest

Foreign Country D

Denied with Explanation

—

Claimed

Other

1.h

Applicant has three bank accounts in Taiwan with a combined value of $115,893.

For Applicant

Foreign Bank Account or Investment

Financial or Property Interest

Taiwan

HEIGHTENED RISK

Admitted

—

Claimed

Other

1.i

Applicant has one bank account in China valued at $77.

For Applicant

Foreign Bank Account or Investment

Financial or Property Interest

China

HEIGHTENED RISK

Denied with Explanation

—

Claimed

Other

1.j

Applicant established a company in Taiwan in approximately 2014 that has no assets and does no business.

For Applicant

Foreign Employment or Pension

Business or Professional Associate

Taiwan

HEIGHTENED RISK

Admitted

—

Claimed

Other

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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

PROCEDURAL RULINGS

FINDINGS OF FACT

POLICIES

ANALYSIS

WHOLE PERSON CONCEPT

FORMAL FINDINGS

CONCLUSION