Block feature works well for this. Stolen Valor would be consider impersonating military personnel or claiming awards not earned for the purpose of obtaining a benefit. Don't think using a name from a military hero counts as stolen valor. Just block him and you wont have to see his comments. But on that note I noticed that blocking someone does not block them from showing up in the chat, it just shows a blank window with the words "blocked player" it would be helpful if the chat will not show at all to prevent spammers to make it hard for everyone else to chat.
Wes Boyanton