Kyle Grayson was a former Petty Officer who was caught embezzling government funds. This resulted in him receiving a six year prison sentence while he was presumably dishonorably discharged from the Navy for doing so. Captain Mike Watson was the one responsible for bringing Grayson to justice and even secretly hired Grayson to kidnap his wife and daughter Sandy Watson all for the sake of allowing Watson to get two million dollars in government funds for himself and his family. As a result, Grayson was eventually arrested and presumably jailed.