ISCR Case 06-10873.h1

Case Headnote

ISCR Case No. 06-10873.h1

deniedFeb 24, 2009· Hon. Richard A. Cefola· hearing

Summary

A naturalized U.S. citizen, originally from Taiwan, was denied a security clearance due to concerns under Guideline B (Foreign Influence) and Guideline C (Foreign Preference). The applicant's parents are Taiwanese citizens, with his father involved in financial planning and splitting time between Taiwan and the U.S. His mother, a retired accountant, lives in the U.S. with his sister, a dual U.S./Taiwanese national.

The applicant maintained significant financial ties to Taiwan, including approximately $87,000 in Taiwanese company stock and $10,000 in a Taiwanese bank account, managed by his mother. He also claimed to have transferred Taiwanese real estate, valued at about $128,500, to his father but provided no documentation to support this. Furthermore, after becoming a U.S. citizen in 2001, he traveled to Taiwan five times between 2004 and 2007 using his Taiwanese passport, which he renewed in 2005 before returning it to the Taiwanese Bureau of Counselor Affairs.

A key factor in the denial was the applicant's unwillingness to renounce his Taiwanese citizenship, citing having lived two-thirds of his life in Taiwan. The judge concluded that these substantial financial interests and the applicant's refusal to renounce foreign citizenship raised significant trustworthiness concerns, leading to the denial of his security clearance.

Why the Applicant Was Denied

The applicant maintained substantial financial interests in Taiwan, including stock and a bank account.
He expressed an unwillingness to renounce his Taiwanese citizenship, indicating a preference for foreign ties over U.S. interests.
The applicant failed to provide documentation supporting his claims of transferring real estate to his father.

Conditions Referenced

Disqualifying

AG ¶ 7(a)raisedForeign Contacts and Interests
AG ¶ 7(e)appliedSubstantial Financial Interest in a Foreign Country
AG ¶ 10(a)(1)raisedPossession of a Current Foreign Passport
AG ¶ 10(a)(5)raisedUsing Foreign Citizenship to Protect Financial Interests

Mitigating

AG ¶ 11(e)appliedSurrender of Foreign Passport
AG ¶ 1(a)rejectedNature of Relationships with Foreign PersonsThe applicant's financial interests and family ties created a heightened risk of foreign influence.

Key Rule Quoted

“Any doubt concerning personnel being considered for access to classified information will be resolved in favor of national security.”

Procedural Posture

SOR issuedOct 23, 2008
Answer filedNov 11, 2008
Hearing heldJan 22, 2009
Decision dateFeb 24, 2009

Cite For

Foreign Influence Due to Financial Interests in a Foreign Country
Foreign Preference Indicated by Retention of Dual Citizenship
Impact of Family Ties on 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
1.a	The Applicant’s parents are citizens of Taiwan. The Applicant’s father is involved in financial planning, and lives six months out of the year in Taiwan and the other six months in the U.S. His father has no connection with the Taiwanese government. The Applicant’s mother is a retired accountant, who lives with the Applicant’s sister in the U.S. His mother also has no connection with the Taiwanese government.	For Applicant	Parent in Foreign Country Immediate Family	Taiwan	Admitted	—	—	—
1.b	The Applicant’s sister, a dual national with Taiwan, works for a city’s government in the U.S.	For Applicant	Sibling in Foreign Country Immediate Family	Taiwan	Admitted	—	—	—
1.c	Through the Applicant’s mother, who uses his name, the Applicant owns about $87,000 of stock in Taiwanese companies, and has about $10,000 in a Taiwanese bank account. Although these accounts are in the Applicant’s name, he avers that he has little access to them, and his mother represents that she will “cooperate with . . . [her] son to transfer . . . [her] money out of his accounts in Taiwan and transfer the money to the U.S.”	Against Applicant	Foreign Bank Account or Investment Financial or Property Interest	Taiwan	Admitted	(e) shared living quarters creating a heightened risk	—	—
1.d	The Applicant avers that he has transferred Taiwanese real estate, worth about $128,500, to his father. However, despite his representation at his hearing, he has provided no documentation in support of this averment.	Against Applicant	Foreign Real Estate Financial or Property Interest	Taiwan	Admitted	(e) shared living quarters creating a heightened risk	—	—
1.e	The Applicant avers that he has transferred Taiwanese real estate, worth about $128,500, to his father. However, despite his representation at his hearing, he has provided no documentation in support of this averment.	Against Applicant	Foreign Real Estate Financial or Property Interest	Taiwan	Admitted	(e) shared living quarters creating a heightened risk	—	—

Allegation

Finding

Relationship

Country

Response

Disqualifying (¶7)

Mitigating applied (¶8)

Mitigation

1.a

The Applicant’s parents are citizens of Taiwan. The Applicant’s father is involved in financial planning, and lives six months out of the year in Taiwan and the other six months in the U.S. His father has no connection with the Taiwanese government. The Applicant’s mother is a retired accountant, who lives with the Applicant’s sister in the U.S. His mother also has no connection with the Taiwanese government.

For Applicant

Parent in Foreign Country

Immediate Family

Taiwan

Admitted

—

1.b

The Applicant’s sister, a dual national with Taiwan, works for a city’s government in the U.S.

For Applicant

Sibling in Foreign Country

Immediate Family

Taiwan

Admitted

—

1.c

Through the Applicant’s mother, who uses his name, the Applicant owns about $87,000 of stock in Taiwanese companies, and has about $10,000 in a Taiwanese bank account. Although these accounts are in the Applicant’s name, he avers that he has little access to them, and his mother represents that she will “cooperate with . . . [her] son to transfer . . . [her] money out of his accounts in Taiwan and transfer the money to the U.S.”

Against Applicant

Foreign Bank Account or Investment

Financial or Property Interest

Taiwan

Admitted

(e) shared living quarters creating a heightened risk

—

1.d

The Applicant avers that he has transferred Taiwanese real estate, worth about $128,500, to his father. However, despite his representation at his hearing, he has provided no documentation in support of this averment.

Against Applicant

Foreign Real Estate

Financial or Property Interest

Taiwan

Admitted

(e) shared living quarters creating a heightened risk

—

1.e

Against Applicant

Foreign Real Estate

Financial or Property Interest

Taiwan

Admitted

(e) shared living quarters creating a heightened risk

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶10)	Mitigating applied (¶11)	Mitigation
2.a	After becoming a naturalized U.S. citizen in 2001, the Applicant traveled to Taiwan on five separate occasions, from 2004~2007, using his Taiwanese passport (TR at page 43 line 4 to page 48 line 8, and GX 2).	For Applicant	Foreign Passport Possession or Use	Admitted	(a) applying for and/or acquiring citizenship in any other country (e) using foreign citizenship to protect financial or business interests in another country in violation of U.S. law	—	—
2.b	He renewed that passport in December of 2005 (TR at page 48 line 9 to page 49 line 23, and GX 3).	For Applicant	Foreign Passport Possession or Use	Admitted	(a) applying for and/or acquiring citizenship in any other country (e) using foreign citizenship to protect financial or business interests in another country in violation of U.S. law	—	—
2.c	The Applicant has returned his passport to the Taiwanese 'Bureau of Counselor Affairs' (TR at page 49 line 24 to page 51 line 15).	For Applicant	Failure to Renounce or Surrender Foreign Status	Denied	—	—	—
2.d	Having lived 'two-thirds' of his life in Taiwan, the Applicant is unwilling to renounce his Taiwanese citizenship (TR at page 52 lines 13~17, at page 54 line 25 to page 57 line 1, and at page 57 line 13 to page 59 line 5).	Against Applicant	Failure to Renounce or Surrender Foreign Status	Admitted	(b) failure to report, or fully disclose when required, possession of a passport or identity card issued by any country other than the U.S.	—	—

Allegation

Finding

Type

Response

Disqualifying (¶10)

Mitigating applied (¶11)

Mitigation

2.a

After becoming a naturalized U.S. citizen in 2001, the Applicant traveled to Taiwan on five separate occasions, from 2004~2007, using his Taiwanese passport (TR at page 43 line 4 to page 48 line 8, and GX 2).

For Applicant

Foreign Passport Possession or Use

Admitted

(a) applying for and/or acquiring citizenship in any other country

(e) using foreign citizenship to protect financial or business interests in another country in violation of U.S. law

—

2.b

He renewed that passport in December of 2005 (TR at page 48 line 9 to page 49 line 23, and GX 3).

For Applicant

Foreign Passport Possession or Use

Admitted

(a) applying for and/or acquiring citizenship in any other country

(e) using foreign citizenship to protect financial or business interests in another country in violation of U.S. law

—

2.c

The Applicant has returned his passport to the Taiwanese 'Bureau of Counselor Affairs' (TR at page 49 line 24 to page 51 line 15).

For Applicant

Failure to Renounce or Surrender Foreign Status

Denied

—

2.d

Having lived 'two-thirds' of his life in Taiwan, the Applicant is unwilling to renounce his Taiwanese citizenship (TR at page 52 lines 13~17, at page 54 line 25 to page 57 line 1, and at page 57 line 13 to page 59 line 5).

Against Applicant

Failure to Renounce or Surrender Foreign Status

Admitted

(b) failure to report, or fully disclose when required, possession of a passport or identity card issued by any country other than the U.S.

—

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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

FINDINGS OF FACT

POLICIES

ANALYSIS

WHOLE PERSON CONCEPT

FORMAL FINDINGS

CONCLUSION