I'm guessing what is being left unsaid is that the people that recieved the bonuses were knowingly involved in fraud. One guy sounds stupid and would rather lose his military benefits than pay back the bonus.
Actually, in the military, you kinda depend on the personnel clerk to tell you what bonuses you are or are not eligible for.
And, I promise you, no personnel clerk will pay you a bonus that you are not eligible for. Why? Because there is too much paperwork for the authorization that can easily be traced. They have to verify your eligibility with the regs, figure out from the regs provided what the bonus amount is, type a Pg. 13 Record of Memorandum stating that you received the bonus, as well as the other documents that you send to disbursing to get the payment made.
Nope, there was no fraud here, just a bunch of idiots at the top who write the regs that got it wrong. Everyone down the chain was just following what the regs said.