Security Clearance Denial

Navy Officer Convicted of Lying During Security Clearance Process

Lieutenant Fan Yang, a U.S. Navy Flight Officer, was investigated by the Federal Bureau of Investigation (FBI) for his involvement in U.S. firearms export control violations, failure to report foreign national contacts, and making false statement during the security clearance process. Lt. Yang, who had a Top-Secret security clearance, conspired with a Chinese national to arrange straw purchases of U.S. firearms and ship them to China in exchange for funds funneled through the Chinese contact’s wife who Yang had hired to help run the family business, BQ Tree LLC. This arrangement netted Yang over $300,000.

In January 2019, Yang completed the SF-86 for a periodic reinvestigation of his security clearance. On the form he did not disclose any foreign contacts or relationships, nor did he disclose his involvement in the family business or the fact he owned foreign bank accounts in China. Yang even had an expired Chinese passport in his possession which he also failed to disclose.

Yang was eventually indicted and plead guilty in Federal court to the charges levied against him. The FBI case summary does not indicate what led the FBI to initiate the investigation, but it was probably a combination of some of the reinvestigation inquires that went out along with information the Naval Criminal Investigative Service, Department of Commerce, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives had that pointed to Yang’s involvement in obtaining special forces maritime raiding craft and engines.

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