Looks like the arson fire took place in July of 1996, and the Marines were given the video shortly thereafter, at which point an investigateion would appropriately ensue. Here's some more info...
Meanwhile, a video found at the scene of an arson at the home of Lt. Col. Loren Stephen, a decorated Fort Hood Army lieutenant colonel, caused the military to discharge Stephen just one week shy of his retirement. An Army private "later would plead guilty to setting the empty house on fire in an attempt to destroy - or perhaps call attention to - the lewd tape," the Houston Chronicle said. The paper also reported: "Like some recent military sex scandals, the dispute at Fort Hood involved contact between an enlisted person and an officer. But this case has prompted new questions about the military's 'don't ask, don't tell policy on homosexuality. ... In recent months, the arsonist and the officer were drummed out of the Army. Both men left Texas and now claim they were victimized, though for vastly different reasons. The arsonist, former Pvt. Michael Burdette Jr., 20, served 90 days in jail, was given a 10-year, probated sentence last November by a court in Coryell County and was ordered to pay $68,445 in restitution. ... [The] felony conviction got him kicked out of the Army. ... Lt. Col. Loren Stephen Loomis, 50, received a 'less than honorable' discharge for 'behavior unbecoming an officer' after an Army board ruled he had engaged in homosexual conduct. ... Loomis is preparing to take his protest to the Board for Correction of Military Records in Washington, D.C., because Secretary of the Army Togo West has refused to reverse the July 14 ruling at Fort Hood. That decision, which took effect about a week before Loomis would have been eligible to receive retirement benefits, requires him to wait until he is 60 to begin collecting his pension, officials said."
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