Stolen Valor being a crime is true, but I believe I saw something that stated that you can only be actually charged with a serious offense if the Valor enabled you to receive some sort of benefit via the fraud.
That's why Blaha isn't in jail (talking about the FBI building and shit).
Also, he's wrong... It's not a felony, as it's not punishable by more than a year of detention.
Nice how at the end he said, "Fuck You" to a group of vets... What a tool.