ISCR Case 03-25885.h1

Case Headnote

ISCR Case No. 03-25885.h1

grantedAug 23, 2005· Hon. Richard A. Cefola· hearing

Summary

A 57-year-old U.S. citizen with a master's degree was granted a security clearance despite concerns under Guideline B (Foreign Influence). The Statement of Reasons cited several foreign connections, including a half-brother, an aunt, and two uncles residing in Hong Kong, and another aunt in the People's Republic of China. The Applicant also co-owned real estate in Hong Kong valued at approximately $150,000 and was a co-signer on his father's $75,000 Hong Kong bank account. Additionally, he served as a trustee for a Hong Kong charity with no government ties, which partially benefits an American university, and in which he held no monetary interest. His parents and mother-in-law are U.S. residents.

Disqualifying conditions were raised regarding the Applicant's half-brother in Hong Kong and his co-signing of his father's Hong Kong bank account. However, mitigating conditions were applied, noting the Applicant's limited contact with foreign relatives and his stated intent to report any national security inquiries to U.S. authorities.

The judge determined that the Applicant's minimal contact with his foreign relatives, specifically seeing his half-brother only once in 40 years and his aunt in China over 50 years ago, significantly reduced the risk. Furthermore, his foreign relatives were not connected to any foreign government and were not in a position to be exploited. The Applicant's substantial U.S. net worth of $1,700,000 was found to outweigh his financial interests in Hong Kong, leading to the clearance being granted.

Why the Applicant Prevailed

The Applicant has minimal contact with foreign relatives, having seen his half-brother only once in 40 years and his aunt in China over 50 years ago.
The Applicant's foreign relatives are not connected to any foreign government and are not in a position to be exploited.
The Applicant's substantial net worth in the U.S. ($1,700,000) outweighs his financial interests in Hong Kong.

Conditions Referenced

Disqualifying

AG ¶ 1.araisedForeign Influence - Immediate Family Member Is a Citizen of a Foreign Country.
AG ¶ 1.graisedForeign Influence - Substantial Financial Interest in a Foreign Country.

Mitigating

AG ¶ 1.bappliedForeign Influence - Immediate Family Members Are Not Agents of a Foreign Power.
AG ¶ 1.jappliedForeign Influence - Foreign Financial Interests Are Minimal and Not Sufficient to Affect the Individual's Security Responsibilities.

Key Rule Quoted

“An individual 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 24, 2005
Answer filedFeb 10, 2005
Hearing heldMay 4, 2005
Decision dateAug 23, 2005

Cite For

Mitigation of Foreign Influence Under Guideline B
Limited Contact with Foreign Relatives as a Mitigating Factor
Substantial U.S. Net Worth as a Mitigating Condition Against Foreign Financial Interests

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 half-brother is a citizen of and resides in Hong Kong.	For Applicant	Sibling in Foreign Country Immediate Family	Hong Kong	Admitted	(a) contact with a foreign family member/associate/friend creating a heightened risk of exploitation	(a) relationships such that a conflict between foreign and U.S. interests is unlikely	Claimed Other
1.b	The Applicant's aunt and two uncles are also citizens of and reside in Hong Kong.	For Applicant	Extended Family in Foreign Country Extended Family	Hong Kong	Admitted	(a) contact with a foreign family member/associate/friend creating a heightened risk of exploitation	(a) relationships such that a conflict between foreign and U.S. interests is unlikely	Claimed Other
1.c	Another aunt is a citizen of and resides in the People's Republic of China.	For Applicant	Extended Family in Foreign Country Extended Family	People's Republic of China	Denied	(a) contact with a foreign family member/associate/friend creating a heightened risk of exploitation	(a) relationships such that a conflict between foreign and U.S. interests is unlikely	Claimed Other
1.d	His parents are in their 80s, and live with the Applicant in the U.S.	For Applicant	Unspecified Foreign Relationship Immediate Family	—	Admitted	(a) contact with a foreign family member/associate/friend creating a heightened risk of exploitation	(a) relationships such that a conflict between foreign and U.S. interests is unlikely	Claimed Other
1.e	His mother-in-law is a U.S. citizen, and resides in the United States.	For Applicant	Unspecified Foreign Relationship Immediate Family	—	Admitted	(a) contact with a foreign family member/associate/friend creating a heightened risk of exploitation	(a) relationships such that a conflict between foreign and U.S. interests is unlikely	Claimed Other
1.f	The Applicant co-owns real estate in Hong Kong worth about $150,000.	For Applicant	Foreign Real Estate Financial or Property Interest	Hong Kong	Admitted	(c) failure to report or disclose association with a foreign person/group/government	(f) foreign interests are minimal and could not be used to influence	Claimed Other
1.g	He is also co-signer of his father's $75,000 bank account in Hong Kong.	For Applicant	Foreign Bank Account or Investment Financial or Property Interest	Hong Kong	Admitted	(c) failure to report or disclose association with a foreign person/group/government	(f) foreign interests are minimal and could not be used to influence	Claimed Other
1.h	The Applicant is also a trustee for a Hong Kong charity that, in part, benefits an American university.	For Applicant	Unspecified Foreign Relationship Other	Hong Kong	Admitted	(c) failure to report or disclose association with a foreign person/group/government	(f) foreign interests are minimal and could not be used to influence	Claimed Other
1.i	The charity has no connection to any government, and the Applicant has no monetary interest in this charity.	For Applicant	Unspecified Foreign Relationship Other	—	Admitted	(c) failure to report or disclose association with a foreign person/group/government	(f) foreign interests are minimal and could not be used to influence	Claimed Other
1.j	If anyone were to approach the Applicant and ask questions about national security related matters, the Applicant would report any such inquiry to appropriate U.S. authorities.	For Applicant	Unspecified Foreign Relationship Other	—	Admitted	(c) failure to report or disclose association with a foreign person/group/government	(f) foreign interests are minimal and could not be used to influence	Claimed Other

Allegation

Finding

Relationship

Country

Response

Disqualifying (¶7)

Mitigating applied (¶8)

Mitigation

1.a

The Applicant's half-brother is a citizen of and resides in Hong Kong.

For Applicant

Sibling in Foreign Country

Immediate Family

Hong Kong

Admitted

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

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

Claimed

Other

1.b

The Applicant's aunt and two uncles are also citizens of and reside in Hong Kong.

For Applicant

Extended Family in Foreign Country

Extended Family

Hong Kong

Admitted

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

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

Claimed

Other

1.c

Another aunt is a citizen of and resides in the People's Republic of China.

For Applicant

Extended Family in Foreign Country

Extended Family

People's Republic of China

Denied

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

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

Claimed

Other

1.d

His parents are in their 80s, and live with the Applicant in the U.S.

For Applicant

Unspecified Foreign Relationship

Immediate Family

—

Admitted

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

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

Claimed

Other

1.e

His mother-in-law is a U.S. citizen, and resides in the United States.

For Applicant

Unspecified Foreign Relationship

Immediate Family

—

Admitted

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

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

Claimed

Other

1.f

The Applicant co-owns real estate in Hong Kong worth about $150,000.

For Applicant

Foreign Real Estate

Financial or Property Interest

Hong Kong

Admitted

(c) failure to report or disclose association with a foreign person/group/government

(f) foreign interests are minimal and could not be used to influence

Claimed

Other

1.g

He is also co-signer of his father's $75,000 bank account in Hong Kong.

For Applicant

Foreign Bank Account or Investment

Financial or Property Interest

Hong Kong

Admitted

(c) failure to report or disclose association with a foreign person/group/government

(f) foreign interests are minimal and could not be used to influence

Claimed

Other

1.h

The Applicant is also a trustee for a Hong Kong charity that, in part, benefits an American university.

For Applicant

Unspecified Foreign Relationship

Other

Hong Kong

Admitted

(c) failure to report or disclose association with a foreign person/group/government

(f) foreign interests are minimal and could not be used to influence

Claimed

Other

1.i

The charity has no connection to any government, and the Applicant has no monetary interest in this charity.

For Applicant

Unspecified Foreign Relationship

Other

—

Admitted

(c) failure to report or disclose association with a foreign person/group/government

(f) foreign interests are minimal and could not be used to influence

Claimed

Other

1.j

If anyone were to approach the Applicant and ask questions about national security related matters, the Applicant would report any such inquiry to appropriate U.S. authorities.

For Applicant

Unspecified Foreign Relationship

Other

—

Admitted

(c) failure to report or disclose association with a foreign person/group/government

(f) foreign interests are minimal and could not be used to influence

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

FINDINGS OF FACT

POLICIES

CONCLUSION

FORMAL FINDINGS

DECISION

FOOTNOTES