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This appeared in the Boston Globe.
"He had a little scratch on his forearm, and he was holding a piece of shrapnel," recalled Kerry's commanding officer, Lieutenant Commander Grant Hibbard. "People in the office were saying, `I don't think we got any fire,' and there is a guy holding a little piece of shrapnel in his palm." Hibbard said he couldn't be certain whether Kerry actually came under fire on Dec. 2, 1968, the date in question and that is why he said he asked Kerry questions about the matter.
But Kerry persisted and, to his own "chagrin," Hibbard said, he dropped the matter. "I do remember some questions, some correspondence about it," Hibbard said. "I finally said, `OK, if that's what happened . . . do whatever you want.' After that, I don't know what happened. Obviously, he got it, I don't know how."
The Navy has a long standing policy of three purple hearts and you’re sent home early.