How far do we carry the Stolen Valor issue?

I ask this because I just returned from one of my several monthly appointments at the VA. While there I witnessed a veteran, I suppose, literally grilling another vet what was in a wheelchair, missing a leg, about the insignia and pins he wore on his cap. I had to interrupt and ask this &&/$# what right he had in doing what he was. His reply was due to his rank on active duty. Obviously he was several years younger than the vet he was grilling, so I told him just to confront me and we could go to release of information to answer his questions, he then decided to leave. Did I do the right thing br interfering?