ISCR Case 12-05015.h1

Case Headnote

ISCR Case No. 12-05015.h1

deniedMay 31, 2013· Hon. Wilford H. Ross· hearing

Summary

A 43-year-old dual citizen of the United States and Japan was denied a security clearance under Guidelines B (Foreign Influence) and C (Foreign Preference). The applicant's connections to Japan, including family ties and previous employment with a Japanese defense contractor, were central to the concerns. Her mother, father, and sister are Japanese citizens residing in Japan, though none are involved with the Japanese government or defense industry. The applicant also previously held a Japanese security clearance, analogous to an American Secret clearance, during her employment with a Japanese company, which required her to attend meetings in classified areas on U.S. naval bases in Japan or the American Embassy in Tokyo.

Concerns were also raised regarding Japan's intelligence activities, as it was listed in 2000 as an active collector of economic and proprietary information and ranked high in 2005 and 2007 for requests to visit U.S. military and defense facilities. The applicant admitted to possessing a current Japanese passport, issued in 2006 and valid through 2016, and to voting in Japanese national elections while living in Japan. She also contributed to the Japanese national pension program for 21 years.

Although the applicant has an American fiancé, has moved to the United States full-time, and transferred all her Japanese financial holdings to an American bank, she was unable to state an unequivocal preference for the United States. She indicated a potential desire to return to Japan as a Japanese citizen at an unknown future time. The judge found that the applicant's continued maintenance of a Japanese passport, voting in Japanese elections, and her inability to demonstrate a clear preference for the United States over Japan, combined with her family ties and past employment, created a potential conflict of interest, leading to the denial of her security clearance.

Why the Applicant Was Denied

The applicant maintained a Japanese passport and voted in Japanese elections, indicating a preference for Japan.
The applicant's family ties and previous employment in Japan raised concerns about foreign influence and divided loyalties.
The applicant did not provide compelling evidence to demonstrate a clear preference for the United States over Japan.

Conditions Referenced

Disqualifying

AG ¶ 7(a)appliedContact with Foreign Family Members
AG ¶ 7(b)appliedConnections to a Foreign Country

Mitigating

AG ¶ 11(a)rejectedDual Citizenship Based on Parents' Citizenship
AG ¶ 11(e)rejectedPassport Has Been Destroyed or Invalidated

Key Rule Quoted

“When an individual acts in such a way as to indicate a preference for a foreign country over the United States, then he or she may be prone to provide information or make decisions that are harmful to the interests of the United States.”

Procedural Posture

SOR issuedOct 10, 2012
Answer filedNov 10, 2012
Hearing heldFeb 6, 2013
Decision dateMay 31, 2013

Cite For

Foreign Preference Concerns Under Guideline C
Foreign Influence Implications Due to Family Ties Under Guideline B
The Burden of Proof on the Applicant to Demonstrate Loyalty to the U.S.

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
2.a	Applicant’s mother and father are Japanese citizens and live in Japan. Her father is retired and takes care of Applicant’s mother, who is disabled. Her sister was born in the United States and is thus, like Applicant, a dual citizen of Japan and the United States by birth. She resides in Japan. None of her relatives are involved with the Japanese government or defense industry.	Against Applicant	Parent in Foreign Country Immediate Family	Japan	Admitted	(a) contact with a foreign family member/associate/friend creating a heightened risk of exploitation (b) connections creating a potential conflict of interest	—	—
2.b	Applicant has connections to Japan. Accordingly, it is appropriate to examine Japan’s relationships with the United States in the realm of protection of information. In 2000 Japan was listed as among the most active collectors of economic and proprietary information based upon a survey by the National Counterintelligence Executive of selected Fortune 500 companies. Furthermore, in 2005 and 2007, Japan ranked high on the National Counterintelligence Executive’s list of foreign countries requesting the most visits to U.S. military facilities, defense contractors, and Department of Energy National Nuclear Security Administration facilities. A high volume of such visits creates opportunities for foreign intelligence efforts against sensitive U.S. technologies.	Against Applicant	Unspecified Foreign Relationship Other	Japan HEIGHTENED RISK	Admitted	(a) contact with a foreign family member/associate/friend creating a heightened risk of exploitation (b) connections creating a potential conflict of interest	—	—
2.c	During her employment with Company One Applicant was required to attend several meetings that were held in classified areas on American naval bases in Japan, or in the American Embassy in Tokyo. In order to attend these meetings Applicant received a Japanese security clearance that was analogous to an American Secret clearance. However, nothing involving the military equipment was classified by either country. Applicant lost this clearance when she quit her job and moved to the United States. Both Japanese and American officials knew Applicant was a dual citizen of Japan and the United States.	Against Applicant	Unspecified Foreign Relationship Other	Japan	Admitted	(a) contact with a foreign family member/associate/friend creating a heightened risk of exploitation (b) connections creating a potential conflict of interest	—	—
2.d	Applicant has visited Japan two times since coming to the United States full-time. For each trip she used her United States passport.	Against Applicant	Unspecified Foreign Relationship Other	Japan	Admitted	(a) contact with a foreign family member/associate/friend creating a heightened risk of exploitation (b) connections creating a potential conflict of interest	—	—
2.e	Because of her long-term employment with Company One Applicant had been able to save a substantial amount of money, which was being held in a Japanese bank. Applicant has transferred all of the funds to an American bank and no longer has any financial holdings in Japan.	Against Applicant	Foreign Bank Account or Investment Financial or Property Interest	Japan	Admitted	(a) contact with a foreign family member/associate/friend creating a heightened risk of exploitation (b) connections creating a potential conflict of interest	—	—
2.f	Applicant testified that she would follow proper procedures if any of her relatives or friends in Japan were to attempt to induce Applicant to reveal classified or sensitive information.	Against Applicant	Unspecified Foreign Relationship Other	Japan	Admitted	(a) contact with a foreign family member/associate/friend creating a heightened risk of exploitation (b) connections creating a potential conflict of interest	—	—
2.g	Applicant has an American fiancé, and has moved to the United States full-time, but was unable to state an unequivocal preference for the United States, stating that she might want to return to Japan as a Japanese citizen at some unknown time in the future.	For Applicant	Unspecified Foreign Relationship Other	Japan	Admitted	(a) contact with a foreign family member/associate/friend creating a heightened risk of exploitation (b) connections creating a potential conflict of interest	—	—

Allegation

Finding

Relationship

Country

Response

Disqualifying (¶7)

Mitigating applied (¶8)

Mitigation

2.a

Applicant’s mother and father are Japanese citizens and live in Japan. Her father is retired and takes care of Applicant’s mother, who is disabled. Her sister was born in the United States and is thus, like Applicant, a dual citizen of Japan and the United States by birth. She resides in Japan. None of her relatives are involved with the Japanese government or defense industry.

Against Applicant

Parent in Foreign Country

Immediate Family

Japan

Admitted

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

(b) connections creating a potential conflict of interest

—

2.b

Applicant has connections to Japan. Accordingly, it is appropriate to examine Japan’s relationships with the United States in the realm of protection of information. In 2000 Japan was listed as among the most active collectors of economic and proprietary information based upon a survey by the National Counterintelligence Executive of selected Fortune 500 companies. Furthermore, in 2005 and 2007, Japan ranked high on the National Counterintelligence Executive’s list of foreign countries requesting the most visits to U.S. military facilities, defense contractors, and Department of Energy National Nuclear Security Administration facilities. A high volume of such visits creates opportunities for foreign intelligence efforts against sensitive U.S. technologies.

Against Applicant

Unspecified Foreign Relationship

Other

Japan

HEIGHTENED RISK

Admitted

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

(b) connections creating a potential conflict of interest

—

2.c

During her employment with Company One Applicant was required to attend several meetings that were held in classified areas on American naval bases in Japan, or in the American Embassy in Tokyo. In order to attend these meetings Applicant received a Japanese security clearance that was analogous to an American Secret clearance. However, nothing involving the military equipment was classified by either country. Applicant lost this clearance when she quit her job and moved to the United States. Both Japanese and American officials knew Applicant was a dual citizen of Japan and the United States.

Against Applicant

Unspecified Foreign Relationship

Other

Japan

Admitted

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

(b) connections creating a potential conflict of interest

—

2.d

Applicant has visited Japan two times since coming to the United States full-time. For each trip she used her United States passport.

Against Applicant

Unspecified Foreign Relationship

Other

Japan

Admitted

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

(b) connections creating a potential conflict of interest

—

2.e

Because of her long-term employment with Company One Applicant had been able to save a substantial amount of money, which was being held in a Japanese bank. Applicant has transferred all of the funds to an American bank and no longer has any financial holdings in Japan.

Against Applicant

Foreign Bank Account or Investment

Financial or Property Interest

Japan

Admitted

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

(b) connections creating a potential conflict of interest

—

2.f

Applicant testified that she would follow proper procedures if any of her relatives or friends in Japan were to attempt to induce Applicant to reveal classified or sensitive information.

Against Applicant

Unspecified Foreign Relationship

Other

Japan

Admitted

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

(b) connections creating a potential conflict of interest

—

2.g

Applicant has an American fiancé, and has moved to the United States full-time, but was unable to state an unequivocal preference for the United States, stating that she might want to return to Japan as a Japanese citizen at some unknown time in the future.

For Applicant

Unspecified Foreign Relationship

Other

Japan

Admitted

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

(b) connections creating a potential conflict of interest

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶10)	Mitigating applied (¶11)	Mitigation
1.a	Applicant has a current Japanese passport, which was issued in September 2006 and valid through September 2016.	For Applicant	Foreign Passport Possession or Use	Admitted	(a) applying for and/or acquiring citizenship in any other country	—	—
1.b	During her period of working in Japan Applicant paid into the Japanese national pension program for 21 years.	For Applicant	Foreign Benefits or Education	Admitted	(a) applying for and/or acquiring citizenship in any other country	—	—
1.c	While living in Japan Applicant acted as a Japanese citizen, voting in several national elections.	For Applicant	Foreign Voting	Admitted	(a) applying for and/or acquiring citizenship in any other country	—	—
1.d	Applicant has not provided compelling evidence to show that the following Mitigating Conditions apply to this particular case, given her particular background.	For Applicant	Unspecified Foreign Preference	Admitted	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶10)

Mitigating applied (¶11)

Mitigation

1.a

Applicant has a current Japanese passport, which was issued in September 2006 and valid through September 2016.

For Applicant

Foreign Passport Possession or Use

Admitted

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

—

1.b

During her period of working in Japan Applicant paid into the Japanese national pension program for 21 years.

For Applicant

Foreign Benefits or Education

Admitted

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

—

1.c

While living in Japan Applicant acted as a Japanese citizen, voting in several national elections.

For Applicant

Foreign Voting

Admitted

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

—

1.d

Applicant has not provided compelling evidence to show that the following Mitigating Conditions apply to this particular case, given her particular background.

For Applicant

Unspecified Foreign Preference

Admitted

—

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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 RULINGS

FINDINGS OF FACT

POLICIES

ANALYSIS

WHOLE PERSON CONCEPT

FORMAL FINDINGS

CONCLUSION

FOOTNOTES