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Dismissed Cases due to lack of evidence

My brother in law was falsely accused of statutory rape about two years ago. A friend of his brother said his name when meeting an underage girl. The girl's mother found her diary saying she had sex with someone bearing my brother in laws name so she went after him. The description the girl gave in the diary was someone who bore no resemblance to my brother in law. The girl also refused to testify or come to court, but her parents still went after him. My sister and brother in law went to court one day and were told his case was dismissed due to lack of evidence. They were so relieved they did not bother to gather more details about how this could still affect his record. This only lasted a couple of months, and were only hearings to see if there was enough evidence to go forth.
He is now trying to enlist in the Navy. The Navy is saying that this incident is still on his record and will prevent him from being able to join. I am wondering if this is correct. It was only the hearings so how could it be on his record? Also, even if it was, it was dismissed. They are saying he needs a letter from his state representative. Luckily, someone in our family works in the government and will most likely be able to attain this for him. I am curious though over how things have played out this way.
I wish I could provide more details, but my sister and her husband did not think it would be important to try and record exactly what happened with the case. I am looking though MA law to try and figure it out myself, but if anyone has knowledge to share on the subject it would be much appreciated. Thank you.

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