Severe Punishment
Aside from possibly losing his benefits and pension, Schmidt may also be punishable under the Uniform of Military Justice (UCM) for not following protocol and long-set rules. Supposedly Navy personnel in the past who came out in Playboy and Playgirl got a formal admonition, as well as demotions from their ranking.
Give Him A Break
It’s been argued by many across the board that, due to Schmidt’s time defending and fighting for the rights of every American, he should be given a pardon for his career as a pornographic film star. He was just trying to keep his family afloat amidst the difficulties and bad business decision-making.