yes

Well, aside from just being morally repugnant, impersonating a veteran is a crime that has all sorts of other ramifications and consequences. As the article points out, this guy was raising funds ostensibly for "veteran's groups," which basically amounts to fraud on his part, and steals money away from actual veterans who may be in need. It also casts an unnecessary and unpleasant cloud of suspicion on the thousands of real veterans who do speaking engagements and appearances across the country. So, yes, this should be a serious offense...Lying about who you are and what you have done to get things and attention out of people is bad enough, but to pretend to be a member of the US military, a position most Americans are raised to see as heroic and above reproach, is particularly heinous.

I watched a "Cold Case" with a similar story recently lol

It also never says that he collected money for his cause anywhere in that article.

To me it sounds as if he saw a chance to be someone better than he was, and it got out of hand.
Was it wrong? Yes. Should this man be adding to our already over populated prisons? No.

I realize that the reason people are so up in arms is the man was impersonating a soldier, but in reality he didn't do any physical harm. He didn't steal anything, he didn't hurt anyone. He told a lie, a big one and now he will be labeled a liar nationally to me, that's punishment enough. We don't impression men who say they are movie producers at bars to pick up chicks, why is this so different?

http://www.facesfromthewall.com/books/b0648.jpg

This is not so unusual a situation as first suspected, as indicated by the book above, chronicling thousands of frauds perpetrated by con men just like the low life in the CNN piece you reference.

The extent of this particular type of con is also exposed in the article linked below, which contains a whole list of phony Iraq heroes, and information about a group that has exposed more than 2,000 con artists who have been impersonating soldiers, some of them collecting for "charities", some even collecting VA benefits and pensions.

http://archive.southcoasttoday.com/daily/03-05/03-24-05/a02wn438.htm
http://www.pownetwork.org/phonies/phonies.htm

A few years ago, Sarah Kenny perpetrated a similar fraud on the people of Colorado when she created a story about her husband who had died a hero's death in Iraq and now needed to be flown home for burial. She collected donations. She had never had a husband in Iraq, in fact, her husband was at her side playing video games while she confessed her ugly and shameless behavior to (of course) the press.

http://www.mudvillegazette.com/archives/002191.html

The offense should be real and this "man" should be prosecuted.

He interfered with the US election process by perpetrating a fraud on candidates and voters alike.

He lied to state lawmakers at the state capitol, speaking on behalf of our soldiers with no right to do so. By doing this he stole an opportunity for Colorado servicemen and women to have true representation in front of their state lawmakers.

He caused distrust of real soldiers and basically spit on their REAL contributions and sacrifices. He did this with no regard for the reputation that so many have given their lives to build.

He raised funds for a false charity and made fraudulent statements to other veterans in order to secure their participation in his scam. By doing this he betrayed the trust of people who donated, as well as the soldiers. In reality, he stole from them, and he stole money that should have, and would have, gone to soldiers and their families, people who not only risked their lives on our behalf (and his), but have sacrificed their lives, their husbands, wives, fathers, sons and daughters.

If we cannot stand up and be counted when this sort of fraud is perpetrated by cowardly scum at the expense of our brave men and women who risk their lives for us, then I say we have lost our moral compass completely. Only a pathetic and spineless society would refuse to oppose bottom feeders like this who defraud soldiers and their surviving widows/families of not only money, but also of the honor and respect that is due them.

I say the offense should carry much more severe punishment.

Take a look at this ABC video, it is very informative:
http://www.youtube.com/watch?v=-UUJJoFaiVI