ISCR Case 12-11629.h1

Case Headnote

ISCR Case No. 12-11629.h1

grantedMay 31, 2013· Hon. Thomas M. Crean· hearing

Summary

A 63-year-old CEO of a defense contractor was granted a security clearance despite initial concerns under Guideline B (Foreign Influence) related to his Lebanese heritage and business activities. The Statement of Reasons detailed several admitted facts, including that his mother, his wife’s brother and sister, and a cousin are citizens and residents of Lebanon. Additionally, the applicant admitted to having a friend who leads Lebanon’s Civil Defense, a bank account in Lebanon with a balance of approximately $2,300,000, and ownership of two parcels of land in Lebanon.

Further concerns arose from the applicant's extensive business dealings, as he admitted to having many business associates in foreign governments due to his work in Foreign Military Sales (FMS). He also acknowledged that his company submitted business proposals under FMS, requiring him to meet with high-level foreign government officials.

Ultimately, the clearance was granted because the applicant successfully mitigated these concerns. His extensive business contacts with foreign officials were integral to U.S. Government-sponsored FMS programs and subject to U.S. oversight. His familial ties to Lebanon were deemed limited and not indicative of divided loyalties, and his financial interests in Lebanon were justified by high interest rates and declared on U.S. tax returns.

Why the Applicant Prevailed

The applicant's extensive business contacts with foreign officials were integral to U.S. Government-sponsored Foreign Military Sales (FMS) programs and subject to U.S. oversight.
The applicant's familial ties to Lebanon were characterized as limited and not indicative of divided loyalties or susceptibility to foreign influence.
The applicant's financial interests in Lebanon were justified by the high interest rates and were declared on U.S. tax returns.

Conditions Referenced

Disqualifying

AG ¶ 7(a)raisedContact with a Foreign Family Member, Business or Professional Associate, Friend, or Other Person Who Is a Citizen of or Resident in a Foreign Country
AG ¶ 7(b)raisedFinancial Interests in a Foreign Country
AG ¶ 7(c)raisedFailure to Report Contacts with Foreign Nationals

Mitigating

AG ¶ 8(a)appliedThe Nature of the Foreign Contacts Is Such That They Do Not Pose a Security Risk
AG ¶ 8(b)appliedThe Applicant Has Established a Long-term Residence in the U.S. and Has Strong Ties to the U.S.
AG ¶ 8(c)appliedThe Applicant's Financial Interests in a Foreign Country Are Not Significant Enough to Pose a Security Risk

Key Rule Quoted

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

Procedural Posture

SOR issuedOct 19, 2012
Answer filedNov 9, 2012
Hearing heldApr 23, 2013Hearing convened after applicant withdrew request for hearing.
Decision dateMay 31, 2013

Cite For

Mitigation of Foreign Influence Concerns Under Guideline B
Importance of U.S. Government Oversight in Foreign Business Dealings
Consideration of Familial Ties in Security Clearance Evaluations

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 admits that his mother is a resident and citizen of Lebanon.	For Applicant	Parent in Foreign Country Immediate Family	Lebanon 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	—	—
1.b	Applicant admits that his wife’s brother and sister are citizens and residents of Lebanon.	For Applicant	In Law in Foreign Country Immediate Family	Lebanon 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	—	—
1.c	Applicant admits that his cousin is a citizen of Lebanon, but resides in Qatar.	For Applicant	Extended Family in Foreign Country Extended Family	Lebanon 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	—	—
1.d	Applicant admits that he has a friend, serving as leader of Lebanon’s Civil Defense.	For Applicant	Friend in Foreign Country Friend GOVT-AFFILIATED	Lebanon 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	—	—
1.e	Applicant admits he has a bank account in Lebanon with a balance of approximately $2,300,000.	For Applicant	Foreign Bank Account or Investment Financial or Property Interest	Lebanon HEIGHTENED RISK	Admitted	(e) shared living quarters creating a heightened risk	—	—
1.f	Applicant admits he owns two parcels of land in Lebanon.	For Applicant	Foreign Real Estate Financial or Property Interest	Lebanon HEIGHTENED RISK	Admitted	(e) shared living quarters creating a heightened risk	—	—
1.g	Applicant admits he has many business associates in foreign Governments because of his work in FMS.	For Applicant	Business Associate in Foreign Country Business or Professional Associate GOVT-AFFILIATED	Lebanon 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	—	—
1.h	Applicant also admits his company submitted business proposals under FMS requiring him to meet with high level foreign government officials.	For Applicant	Foreign Government Contact Business or Professional Associate GOVT-AFFILIATED	Lebanon 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	—	—
1.i–1.j	2 sub-charges — specific text not stated in this decision (for the applicant).	For Applicant	Unspecified Foreign Relationship Other	—		—	—	—

Allegation

Finding

Relationship

Country

Response

Disqualifying (¶7)

Mitigating applied (¶8)

Mitigation

1.a

Applicant admits that his mother is a resident and citizen of Lebanon.

For Applicant

Parent in Foreign Country

Immediate Family

Lebanon

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

—

1.b

Applicant admits that his wife’s brother and sister are citizens and residents of Lebanon.

For Applicant

In Law in Foreign Country

Immediate Family

Lebanon

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

—

1.c

Applicant admits that his cousin is a citizen of Lebanon, but resides in Qatar.

For Applicant

Extended Family in Foreign Country

Extended Family

Lebanon

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

—

1.d

Applicant admits that he has a friend, serving as leader of Lebanon’s Civil Defense.

For Applicant

Friend in Foreign Country

Friend

GOVT-AFFILIATED

Lebanon

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

—

1.e

Applicant admits he has a bank account in Lebanon with a balance of approximately $2,300,000.

For Applicant

Foreign Bank Account or Investment

Financial or Property Interest

Lebanon

HEIGHTENED RISK

Admitted

(e) shared living quarters creating a heightened risk

—

1.f

Applicant admits he owns two parcels of land in Lebanon.

For Applicant

Foreign Real Estate

Financial or Property Interest

Lebanon

HEIGHTENED RISK

Admitted

(e) shared living quarters creating a heightened risk

—

1.g

Applicant admits he has many business associates in foreign Governments because of his work in FMS.

For Applicant

Business Associate in Foreign Country

Business or Professional Associate

GOVT-AFFILIATED

Lebanon

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

—

1.h

Applicant also admits his company submitted business proposals under FMS requiring him to meet with high level foreign government officials.

For Applicant

Foreign Government Contact

Business or Professional Associate

GOVT-AFFILIATED

Lebanon

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

—

1.i–1.j

2 sub-charges — specific text not stated in this decision (for the applicant).

For Applicant

Unspecified Foreign Relationship

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

FINDINGS OF FACT

POLICIES

ANALYSIS

WHOLE PERSON CONCEPT

FORMAL FINDINGS

CONCLUSION