Blackmail
Admiral Kauffman, the Superintendent, pulled me into a surprise private meeting and said "I don't care what happened, you had an outstanding record and I am going to make an example of you. If you don't resign I will destroy you and you will never get a job or acceptance to another college." It is clear from the record he meant what he said.
See Fraud - Evaluations tab to compare a simultaneous press release for an outstanding record versus a loser with mental problems who doesn't date girls. The military knew that the conservative courts would support a summary dismissal with a viable excuse such as a fraudulent evaluation with a suggestion of homosexuality.
It takes 150 demerits for a dismissal under the conduct system. The Company Officer can wrack that up in a week without breaking a sweat. When the Superintendent says you are gone, you are gone, unless you have powerful political backing. And the Company Officer understood that if he received a mediocre performance evaluation from the Admiral it would have been a career ender.
The Academy grads along the way knew they were either participating in or covering up a crime. The acid test is whether or not anyone indoctrinated in the honor system at the Academy could possibly be that stupid.
The bureaucrats in the BCNR were simply covering their butts knowing that challenging the flagrant corruption was a career ender. It is a parallel to the SEC burying its head in the sand to protect their butts during the worst financial scam in history with subprime mortgages.
As for the courts, one can only speculate on whether or not the flagrant acts of contempt for the constitution and laws of the United States as well as contempt for our military justice system and our men and women in uniform were a deliberate act or the result of some of other factors.