ISCR Case 02-30071.h1

Case Headnote

ISCR Case No. 02-30071.h1

grantedJul 28, 2003· Hon. Richard A. Cefola· hearing

Summary

A 47-year-old U.S. citizen, serving as president of a defense contractor, was granted a security clearance despite initial concerns under Guideline B (Foreign Influence) and Guideline C (Foreign Preference). These concerns stemmed from his dual nationality with Israel, his prior service in the Israeli Army from 1976 to 1980, and his financial interest in an Israeli apartment. Although he became a U.S. citizen in 1992, Israel continued to consider him a dual national, requiring him to use his Israeli passport for visits between 1996 and 1999.

To mitigate these issues, the Applicant surrendered his Israeli passport to the Israeli Consulate and initiated the renunciation process for his Israeli citizenship. Additionally, it was established that his brother, a bus driver residing in Israel, is not in a position to be exploited by a foreign government. The Applicant also demonstrated that his financial interests in Israel were minimal compared to his substantial net worth in the U.S.

The Administrative Judge found that the Applicant successfully addressed the disqualifying conditions by meeting the applicable mitigating conditions, leading to the granting of his security clearance.

Why the Applicant Prevailed

The Applicant surrendered his Israeli passport and initiated the renunciation of his Israeli citizenship.
The Applicant's brother is not connected to any foreign government and cannot be exploited.
The Applicant's financial interests in Israel are minimal compared to his substantial net worth in the U.S.

Conditions Referenced

Disqualifying

C1raisedExercise of Dual Citizenship
C2raisedPossession of a Foreign Passport
C3raisedMilitary Service for a Foreign Country
B1raisedImmediate Family Member Is a Citizen of a Foreign Country
B8raisedSubstantial Financial Interest in a Foreign Country

Mitigating

C2appliedIndicators of Possible Foreign Preference Occurred Before Obtaining U.S. Citizenship
C4appliedIndividual Has Expressed a Willingness to Renounce Dual Citizenship
B1appliedImmediate Family Member Is Not an Agent of a Foreign Power
B5appliedForeign Financial Interests Are Minimal

Key Rule Quoted

“An individual who demonstrates a foreign preference, or who is subject to a foreign influence, may be prone to provide information or make decisions that are harmful to the interests of the United States.”

Procedural Posture

SOR issuedJan 27, 2003
Answer filedFeb 3, 2003
Hearing heldJul 8, 2003rescheduled from May 23, 2003 at Applicant's request
Decision dateJul 28, 2003

Cite For

Mitigation of Foreign Preference Due to Renunciation of Dual Citizenship
Minimal Foreign Financial Interests Under Guideline B
Absence of Foreign Influence From Immediate Family Members

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	The Applicant's brother is a citizen of and resides in Israel.	For Applicant	Sibling in Foreign Country Immediate Family	Israel	Admitted	—	(a) relationships such that a conflict between foreign and U.S. interests is unlikely	—
2.b	The Applicant also owns one-half interest in an apartment in Israel.	For Applicant	Foreign Real Estate Financial or Property Interest	Israel	Admitted	—	(e) promptly complied with reporting requirements	—
2.c	The Applicant's brother is a bus driver.	For Applicant	Sibling in Foreign Country Immediate Family	Israel	Admitted	—	(a) relationships such that a conflict between foreign and U.S. interests is unlikely	—

Allegation

Finding

Relationship

Country

Response

Disqualifying (¶7)

Mitigating applied (¶8)

Mitigation

2.a

The Applicant's brother is a citizen of and resides in Israel.

For Applicant

Sibling in Foreign Country

Immediate Family

Israel

Admitted

—

(a) relationships such that a conflict between foreign and U.S. interests is unlikely

—

2.b

The Applicant also owns one-half interest in an apartment in Israel.

For Applicant

Foreign Real Estate

Financial or Property Interest

Israel

Admitted

—

(e) promptly complied with reporting requirements

—

2.c

The Applicant's brother is a bus driver.

For Applicant

Sibling in Foreign Country

Immediate Family

Israel

Admitted

—

(a) relationships such that a conflict between foreign and U.S. interests is unlikely

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶10)	Mitigating applied (¶11)	Mitigation
1.a	The Applicant served in the Israeli Army from 1976~1980, prior to his emigrating to the United States and his eventually becoming a U.S. citizen in 1992.	For Applicant	Foreign Military or Government Service	Admitted	(a) applying for and/or acquiring citizenship in any other country	(b) dual citizenship is based solely on parental citizenship or birth in a foreign country, and there is no evidence of foreign preference	—
1.b	When he became a U.S. citizen, however, Israel still considered him to be a dual national; and as such, he retained an Israeli passport.	For Applicant	Foreign Passport Possession or Use	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.	(b) dual citizenship is based solely on parental citizenship or birth in a foreign country, and there is no evidence of foreign preference (d) the exercise of the rights/privileges/obligations of foreign citizenship occurred before the individual became a U.S. citizen	—
1.c	As a result, when the Applicant visited Israel on several occasions during the period 1996~1999, he was required to use his Israeli passport.	For Applicant	Foreign Passport Possession or Use	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.	(b) dual citizenship is based solely on parental citizenship or birth in a foreign country, and there is no evidence of foreign preference (d) the exercise of the rights/privileges/obligations of foreign citizenship occurred before the individual became a U.S. citizen	—
1.d	Most recently, however, the Applicant has surrendered his Israeli passport to the Israeli Consulate, and he has also initiated the renunciation process regarding his Israeli citizenship.	For Applicant	Failure to Renounce or Surrender Foreign Status	Admitted	—	(d) the exercise of the rights/privileges/obligations of foreign citizenship occurred before the individual became a U.S. citizen	—

Allegation

Finding

Type

Response

Disqualifying (¶10)

Mitigating applied (¶11)

Mitigation

1.a

The Applicant served in the Israeli Army from 1976~1980, prior to his emigrating to the United States and his eventually becoming a U.S. citizen in 1992.

For Applicant

Foreign Military or Government Service

Admitted

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

(b) dual citizenship is based solely on parental citizenship or birth in a foreign country, and there is no evidence of foreign preference

—

1.b

When he became a U.S. citizen, however, Israel still considered him to be a dual national; and as such, he retained an Israeli passport.

For Applicant

Foreign Passport Possession or Use

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.

(b) dual citizenship is based solely on parental citizenship or birth in a foreign country, and there is no evidence of foreign preference

(d) the exercise of the rights/privileges/obligations of foreign citizenship occurred before the individual became a U.S. citizen

—

1.c

As a result, when the Applicant visited Israel on several occasions during the period 1996~1999, he was required to use his Israeli passport.

For Applicant

Foreign Passport Possession or Use

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.

(b) dual citizenship is based solely on parental citizenship or birth in a foreign country, and there is no evidence of foreign preference

(d) the exercise of the rights/privileges/obligations of foreign citizenship occurred before the individual became a U.S. citizen

—

1.d

Most recently, however, the Applicant has surrendered his Israeli passport to the Israeli Consulate, and he has also initiated the renunciation process regarding his Israeli citizenship.

For Applicant

Failure to Renounce or Surrender Foreign Status

Admitted

—

(d) the exercise of the rights/privileges/obligations of foreign citizenship occurred before the individual became a U.S. citizen

—

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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

CONCLUSION

FORMAL FINDINGS

DECISION

FOOTNOTES