in the U.S. Navy, this is a slang term used to denote a Bad Conduct Discharge (BCD), one of the worse type of military discharges given. A discharge like this is basically given for commiting offenses that would count as felonies in the civilian world.
David Doo-no-good was court-martialed today and found guilty of molesting his own daughter. He recieved a reduction-in-rate to the bottom paygrade (E-1), all his pay and allowances were forfeited, he got sentenced to 12 years at the Pebble Factory (the military slammer located at Leavenworth, Kansas),and he will receieve a Bad Chicken Dinner. After that no one will want to hire him, no college will want to admit him, he will need to find some rich bitch to marry and support him. Was the action worth all that? He is one major SMF. No bones about it.