THE young woman at the centre of the Australian Defence Force Academy "Skype sex" scandal is preparing to sue Defence after her medical files were allegedly handed to an inquiry officer without her knowledge.

Known only as "Kate", the RAAF cadet, 18, was allegedly secretly filmed having sex with army cadet Daniel McDonald 19, while Dylan De Blaquiere, 18, is accused of watching via the internet in a nearby room with several other males.

Mr McDonald was charged with one count of indecency while both he and Mr De Blaquiere were charged with use of a carriage service to menace, harass or offend. Their lawyer has told a court both would plead not guilty.

Mr De Blanquiere had already resigned from ADFA but it is understood McDonald, who has a family member in an elite defence role, has the support of defence heirachy to continue his military career.

Kate went public, claiming senior officers had ignored her concerns, and said she had since been vilified by fellow cadets at ADFA, where undergraduates are subject to strict "no-fraternisation" rules.

She also had a falling out with her parents, is living with her grandparents and, according to sources close to her, is depressed and not expecting to return to ADFA or to have a military career. It is understood Kate has asked her lawyers to prepare a Federal Court action seeking damages.

It comes after the government announced a $5 million package of six inquiries into sexual misconduct in the defence forces, including one into the specifics of the Skype incident headed by Melbourne barrister and former air force officer Andrew Kirkham QC."They handed her medical files to (Mr) Kirkham the morning he arrived ... that means a whole lot of defence lawyers have had access to her personal, private information," a source claimed. "Has Mr Kirkham asked for the medical files of the two young males?"

Sources claim Defence handed the medical files over because they revealed personal information, such as that Kate was on the contraceptive pill.

"What does that have to do with the inquiry?" a source close to the family asked.

It is understood many ADFA female cadets use the pill to regulate their menstrual cycle so they can participate in the strenuous program.

Outgoing Defence Chief Air Chief Marshal Angus Houston denied that Kate had been intimidated and urged people not to jump to judgment: "Let's see where it falls when (Mr) Kirkham reports."

Critics have called for the closure of ADFA and its "St Trinian's" rules.

"Students should go to a 'normal' university and only join the military after they have grown up," one said.

Originally published as ADF sex scandal cadet sues