ISCR Case 04-10535.h1

Case Headnote

ISCR Case No. 04-10535.h1

grantedMar 22, 2006· Hon. Matthew E. Malone· hearing

Summary

This security clearance decision involved an applicant, a naturalized U.S. citizen originally from Germany, who has resided in the U.S. since 1987. The Statement of Reasons raised concerns under Guideline B (Foreign Influence) and Guideline C (Foreign Preference). Allegations included that the applicant's parents and brother are German citizens residing in Germany, that he had traveled to Germany multiple times in the past six years, and that he was an heir to his parents' estate there. Further allegations stated he exercised dual citizenship, possessed a foreign passport in 2004, carried both U.S. and foreign passports when traveling, renewed his foreign citizenship while holding U.S. citizenship, and maintained foreign citizenship for potential overseas business and inheritance interests.

However, the applicant successfully mitigated these concerns. He renounced his German citizenship and relinquished his German passport in 2005, demonstrating a commitment to U.S. interests. His significant financial interests and assets are solely located in the U.S., which mitigated foreign influence concerns. Additionally, his family members in Germany were not in positions susceptible to coercion or exploitation by the German government.

Based on these mitigating factors, the security clearance was GRANTED. The decision highlighted the applicant's actions to sever foreign ties and the nature of his family connections as key reasons for the favorable outcome.

Why the Applicant Prevailed

The applicant renounced his German citizenship and relinquished his passport, demonstrating a commitment to U.S. interests.
The applicant's significant financial interests and assets are solely in the U.S., mitigating foreign influence concerns.
The applicant's family members in Germany are not in positions to be coerced or exploited by the German government.

Conditions Referenced

Disqualifying

DC 1raisedDual Citizenship
DC 2raisedPossession And/or Use of a Foreign Passport
DC 8raisedSubstantial Financial Interest in a Foreign Country

Mitigating

MC 1appliedForeign Contacts Are Not in a Position to Be Exploited
MC 4appliedIndividual Has Expressed a Willingness to Renounce Dual Citizenship
MC 5appliedForeign Financial Interests Are Minimal

Key Rule Quoted

“A security clearance decision is intended to resolve whether it is clearly consistent with the national interest for an applicant to either receive or continue to have access to classified information.”
— Department of the Navy v. Egan, 484 U.S. 518 (1988)

Procedural Posture

SOR issuedJun 7, 2005
Answer filed—
Hearing heldOct 20, 2005
Decision dateMar 22, 2006

Cite For

Mitigation of Foreign Influence Under Guideline B
Mitigation of Foreign Preference Under Guideline C
Impact of Renouncing Foreign Citizenship on Security Clearance Eligibility

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 government established Applicant's parents and brother are citizens of and reside in Germany.	For Applicant	Parent in Foreign Country Immediate Family	Germany	Unknown	(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	—
2.b	The government alleged Applicant has traveled to Germany several times in the past six years.	For Applicant	Unspecified Foreign Relationship Other	Germany	Unknown	—	—	—
2.c	The government alleged Applicant is an heir to his parents' estate in Germany.	For Applicant	Unspecified Foreign Relationship Other	Germany	Unknown	—	—	—
2.d	The government alleged Applicant received compensation from a German company that bought his business.	For Applicant	Business Associate in Foreign Country Business or Professional Associate	Germany	Unknown	(h) foreign nationals acting to increase the individual’s vulnerability	(e) promptly complied with reporting requirements	—

Allegation

Finding

Relationship

Country

Response

Disqualifying (¶7)

Mitigating applied (¶8)

Mitigation

2.a

The government established Applicant's parents and brother are citizens of and reside in Germany.

For Applicant

Parent in Foreign Country

Immediate Family

Germany

Unknown

(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

—

2.b

The government alleged Applicant has traveled to Germany several times in the past six years.

For Applicant

Unspecified Foreign Relationship

Other

Germany

Unknown

—

2.c

The government alleged Applicant is an heir to his parents' estate in Germany.

For Applicant

Unspecified Foreign Relationship

Other

Germany

Unknown

—

2.d

The government alleged Applicant received compensation from a German company that bought his business.

For Applicant

Business Associate in Foreign Country

Business or Professional Associate

Germany

Unknown

(h) foreign nationals acting to increase the individual’s vulnerability

(e) promptly complied with reporting requirements

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶10)	Mitigating applied (¶11)	Mitigation
1.a	The government alleged Applicant exercises dual citizenship (SOR ¶ 1.a)	For Applicant	Foreign Citizenship Acquisition or Application	Admitted	(a) applying for and/or acquiring citizenship in any other country (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.	(d) the exercise of the rights/privileges/obligations of foreign citizenship occurred before the individual became a U.S. citizen	—
1.b	possessed, at the time DSS interviewed him in 2004, a foreign passport (SOR ¶ 1.b)	For Applicant	Foreign Passport Possession or Use	Admitted	(a) applying for and/or acquiring citizenship in any other country (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.	—	—
1.c	carries both his U.S. and foreign passports when he travels (SOR ¶ 1.c)	For Applicant	Foreign Passport Possession or Use	Admitted	(a) applying for and/or acquiring citizenship in any other country (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.	—	—
1.d	renewed his foreign citizenship while holding U.S. citizenship (SOR ¶ 1.d)	For Applicant	Foreign Citizenship Acquisition or Application	Admitted	(a) applying for and/or acquiring citizenship in any other country (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.	—	—
1.e	maintains foreign citizenship to facilitate potential overseas business opportunities and inheritance interests in his native country (SOR ¶ 1.e)	For Applicant	Foreign Citizenship Acquisition or Application	Denied	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶10)

Mitigating applied (¶11)

Mitigation

1.a

The government alleged Applicant exercises dual citizenship (SOR ¶ 1.a)

For Applicant

Foreign Citizenship Acquisition or Application

Admitted

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

(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.

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

—

1.b

possessed, at the time DSS interviewed him in 2004, a foreign passport (SOR ¶ 1.b)

For Applicant

Foreign Passport Possession or Use

Admitted

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

(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.

—

1.c

carries both his U.S. and foreign passports when he travels (SOR ¶ 1.c)

For Applicant

Foreign Passport Possession or Use

Admitted

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

(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.

—

1.d

renewed his foreign citizenship while holding U.S. citizenship (SOR ¶ 1.d)

For Applicant

Foreign Citizenship Acquisition or Application

Admitted

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

(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.

—

1.e

maintains foreign citizenship to facilitate potential overseas business opportunities and inheritance interests in his native country (SOR ¶ 1.e)

For Applicant

Foreign Citizenship Acquisition or Application

Denied

—

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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

SYNOPSIS

APPEARANCES

STATEMENT OF CASE

FINDINGS OF FACT

CONCLUSION

FORMAL FINDINGS

DECISION

FOOTNOTES