You can "revise memories" with this stuff.
If you do a Google.com search there ought to be several pieces in the first 10 hits that refer you to its use in psychiatry.
BTW, it can "delete memories", and "add memories", all in the hands of an experienced professional (of some kind).
Probably the reason Hillary thinks she was under fire in Bosnia ~ ever check how many face lifts and tooth jobs she's had done ~ it's incredible. If this is her anesthetic of choice she's developed an interesting set of beliefs based on what the dentist told her (while under), what he had on TV or radio as "background noise" at the time, or maybe what Bill Clinton wanted her to believe ~ yeah, an auxiliary to "date rape drug", the "forgeddabout it drug" for your spouse!
Remember, these people have no morals or scruples so anything is possible.
Back to the guy at work, as I recall what gets these guys busted is when they start wearing pieces of uniforms with insignia, or various awards. The awards are protected by law.
About telling tall tales about military service, not real sure that such behavior in the absence of the insignias and awards are actionable.
Also, the age you are setting for this guy puts him well within the range of Alzheimers. He may very well not be able to differentiate between memories of what he did and what he saw on TV.
With folks who are "elderly" or nearly so, it's probably best to avoid the prosecutorial route as a first course of action.
I agree. He’s nearly seventy-one. He’s probably just demented.
In any case, I’d say that siccing the FBI on him would be a waste of time and money.