SCOTUS strikes down Stolen Valor law
It is no longer illegal to falsely claim to have won a medal. The Supreme Court has thrown out the Stolen Valor law. The opinion is here: http://www.supremecourt.gov/opinions/11pdf/11-210d4e9.pdf
I think this is a good move, even though people who steal the honor are despicable. The Court has become hard line on the First Amendment. This is why they issued the Citizens United decision.
The appropriate punishment for medal fraudsters is social: shun them and shame them.