It is cool, but I don’t believe the story.
I agree. The workmanship leaves quite a bit to be desired and the screws ruin the finished look and the clunky eagle fixture is oversized. The post-war period was awash in “Nazi” relics most of which never would have never made the grade during the Reich period. Here is a classic example of this kind of crap: http://www.bing.com/images/search?q=german+ss+nazi+paratrooper+knife&qpvt=German+SS+Nazi+Paratrooper+Knife&FORM=IGRE
I would say this is closer to the work of a reasonably competent amateur with a Nazi fetish.