Did this guy even serve and have the right to wear a military uniform? If not, I would think there is something in the US Code about that. If so, it's still FRAUD because any wannabe benefits in some way by his Stolen Valor. If not direct financial gain, then free drinks, meals, false admiration, etc.
Every municipality and State has laws against wearing LEO uniforms and/or medals not earned. If we ever needed another Fedgov law, this is one I would agree with. Guess I should add a Navy Commendation medal to my DD214. There's always Photo Shop (/s).
“If so, it’s still FRAUD because any wannabe benefits in some way by his Stolen Valor. If not direct financial gain, then free drinks, meals, false admiration, etc.”
If it’s fraud then you can charge them with fraud. Problem solved, you don’t need a new law.