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Thanks for the chance to help. I am an attorney with over 12 years military law experience.
Sounds like a good case. That is, what you describe sounds like a great case to apply to the BCNR (Board of Corrections for Naval Records) and ask for them to upgrade the characterization of your discharge.
And that is rare...that is, it is rare for me to tell someone they have a chance at an upgrade. I must get 4-5 calls every week from folks who received a general, or an OTH and will pay anything to have it upgraded. And for the most part I can not take their money...since it is difficult to obtain an upgrade.
You are required to prove that the government was "unjust" in their handling of the case, or that there is clear error. Again, in most folks cases, that is not possible.
But what you describe? If they took all this trouble to separate you with a general discharge, basically denying you the opportunity to have your "day in court" (even an administrative hearing)? I think you have a shot.
It is a two step process...and you must file within 3 years of separation. The first step is to apply to the NDRB (Naval Discharge Review Board). They routinely deny applications but you must go to them first. Then, if they deny the application, you can file with the BCNR. You can see the process on the BCNR website here http://www.donhq.navy.mil/bcnr/bcnr.htm
Do yourself a favor...have a lawyer with experience help you with this...it sounds like you have a great case...let a lawyer help you put it into a package that is easy to understand
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