ISCR Case 04-01909.h1

Case Headnote

ISCR Case No. 04-01909.h1

grantedAug 29, 2005· Hon. Michael J. Breslin· hearing

Summary

A U.S. citizen, born in Australia with over 30 years of experience in U.S.-Australian intelligence collaboration, was granted a security clearance despite initial concerns under Guideline B (Foreign Influence) and Guideline C (Foreign Preference). The Statement of Reasons cited his mother, daughter, and two associates as Australian citizens and residents. His daughter, an Australian citizen and resident, works as a research officer in the DSD and has held a Top Secret security clearance since 2002. The applicant also maintained some contact with friends in Australia, including a former supervisor from the Australian Department of Defence.

Additionally, the applicant held property in Australia and had exercised dual citizenship for a period, obtaining a U.S. passport in November 2002 and using it for travel to Australia that same month. These factors raised disqualifying conditions related to foreign influence and preference.

However, the applicant successfully mitigated these concerns. He renounced his Australian citizenship and surrendered his Australian passport. His financial interests in Australia were determined to be insufficient to create vulnerability to foreign influence, and his family members residing in Australia were not considered agents of a foreign power. Based on these mitigating factors, the security clearance was granted.

Why the Applicant Prevailed

Applicant renounced his Australian citizenship and surrendered his Australian passport.
Financial interests in Australia were deemed insufficient to create vulnerability to foreign influence.
Applicant's family members, while residing in Australia, were not considered agents of a foreign power.

Conditions Referenced

Disqualifying

E2.A2.1.2.1raisedImmediate Family Members Are Citizens or Residents of a Foreign Country.
E2.A2.1.2.3raisedRelatives Connected with a Foreign Government.
E2.A2.1.2.8raisedSubstantial Financial Interest in a Foreign Country.

Mitigating

E2.A2.1.3.1appliedImmediate Family Members Are Not Agents of a Foreign Power.
E2.A2.1.3.2appliedThe Individual Has Taken Significant Steps to Reduce or Eliminate Vulnerability to Foreign Influence.

Key Rule Quoted

“The adjudicative process is an examination of a sufficient period of a person's life to make an affirmative determination that the person is eligible for a security clearance.”
— Directive, ¶ E2.2.1.

Procedural Posture

SOR issuedAug 10, 2004
Answer filedAug 26, 2004
Hearing heldDec 7, 2004
Decision dateAug 29, 2005

Cite For

Mitigation of Foreign Influence Concerns Due to Renunciation of Foreign Citizenship
Impact of Family Ties on Security Clearance Decisions
Consideration of Financial Interests in Foreign Countries 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
2.a	Applicant's mother, daughter, and two associates are citizens and residents of Australia.	For Applicant	Parent in Foreign Country Immediate Family	Australia LOW RISK / ALLY	Admitted	(a) contact with a foreign family member/associate/friend creating a heightened risk of exploitation (b) connections creating a potential conflict of interest	(a) relationships such that a conflict between foreign and U.S. interests is unlikely (b) deep/longstanding U.S. loyalties; conflict resolves in favor of the U.S.	Documented Severed Foreign Contact Documented Deep U.S. Ties
2.b	Applicant has property holdings in Australia, but they are insufficient to make him vulnerable to foreign influence.	For Applicant	Foreign Real Estate Financial or Property Interest	Australia LOW RISK / ALLY	Admitted	(e) shared living quarters creating a heightened risk	(a) relationships such that a conflict between foreign and U.S. interests is unlikely	Documented Foreign Assets Divested
2.c	Applicant exercised dual citizenship for a time, but later surrendered his passport and renounced his Australian citizenship.	For Applicant	Unspecified Foreign Relationship Other	Australia LOW RISK / ALLY	Admitted	(c) failure to report or disclose association with a foreign person/group/government	(a) relationships such that a conflict between foreign and U.S. interests is unlikely	Documented Foreign Passport Surrendered
2.d	Applicant's daughter is a citizen and resident of Australia and works as a research officer in the DSD, and has held a Top Secret security clearance since 2002.	For Applicant	Sibling in Foreign Country Immediate Family GOVT-AFFILIATED	Australia LOW RISK / ALLY	Admitted	(b) connections creating a potential conflict of interest	(a) relationships such that a conflict between foreign and U.S. interests is unlikely	Documented Deep U.S. Ties
2.e	Applicant maintains some contact with friends in Australia, including a former supervisor from the Australian Department of Defence.	For Applicant	Friend in Foreign Country Friend	Australia LOW RISK / ALLY	Admitted	—	—	Claimed Severed Foreign Contact

Allegation

Finding

Relationship

Country

Response

Disqualifying (¶7)

Mitigating applied (¶8)

Mitigation

2.a

Applicant's mother, daughter, and two associates are citizens and residents of Australia.

For Applicant

Parent in Foreign Country

Immediate Family

Australia

LOW RISK / ALLY

Admitted

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

(b) connections creating a potential conflict of interest

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

(b) deep/longstanding U.S. loyalties; conflict resolves in favor of the U.S.

Documented

Severed Foreign Contact

Documented

Deep U.S. Ties

2.b

Applicant has property holdings in Australia, but they are insufficient to make him vulnerable to foreign influence.

For Applicant

Foreign Real Estate

Financial or Property Interest

Australia

LOW RISK / ALLY

Admitted

(e) shared living quarters creating a heightened risk

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

Documented

Foreign Assets Divested

2.c

Applicant exercised dual citizenship for a time, but later surrendered his passport and renounced his Australian citizenship.

For Applicant

Unspecified Foreign Relationship

Other

Australia

LOW RISK / ALLY

Admitted

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

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

Documented

Foreign Passport Surrendered

2.d

Applicant's daughter is a citizen and resident of Australia and works as a research officer in the DSD, and has held a Top Secret security clearance since 2002.

For Applicant

Sibling in Foreign Country

Immediate Family

GOVT-AFFILIATED

Australia

LOW RISK / ALLY

Admitted

(b) connections creating a potential conflict of interest

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

Documented

Deep U.S. Ties

2.e

Applicant maintains some contact with friends in Australia, including a former supervisor from the Australian Department of Defence.

For Applicant

Friend in Foreign Country

Friend

Australia

LOW RISK / ALLY

Admitted

—

Claimed

Severed Foreign Contact

¶	Allegation	Finding	Type	Response	Disqualifying (¶10)	Mitigating applied (¶11)	Mitigation
1.a	Applicant exercised dual citizenship for a time, but later surrendered his passport and renounced his Australian citizenship.	For Applicant	Failure to Renounce or Surrender Foreign Status	Admitted	—	—	—
1.b	Applicant obtained a U.S. passport in November 2002, and used it to travel to Australia that month.	For Applicant	Foreign Passport Possession or Use	Admitted	—	—	—
1.c	Since that time, Applicant renounced his dual citizenship and returned his Australian passport.	For Applicant	Failure to Renounce or Surrender Foreign Status	Admitted	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶10)

Mitigating applied (¶11)

Mitigation

1.a

Applicant exercised dual citizenship for a time, but later surrendered his passport and renounced his Australian citizenship.

For Applicant

Failure to Renounce or Surrender Foreign Status

Admitted

—

1.b

Applicant obtained a U.S. passport in November 2002, and used it to travel to Australia that month.

For Applicant

Foreign Passport Possession or Use

Admitted

—

1.c

Since that time, Applicant renounced his dual citizenship and returned his Australian passport.

For Applicant

Failure to Renounce or Surrender Foreign Status

Admitted

—

Loading case…

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

SYNOPSIS

APPEARANCES

STATEMENT OF CASE

FINDINGS OF FACT

POLICIES

CONCLUSION

FORMAL FINDINGS

DECISION

FOOTNOTES