Strandlof's attorney believed the law was too vague and that "protecting the reputation of military decorations is insufficient to survive [strict scrutiny]", a level of judicial review that requires the government to justify any limitation it places on free speech.

"[19] On July 16, 2010, a federal judge in Denver ruled the Stolen Valor Act is "facially unconstitutional" because it violates free speech and dismissed the criminal case against Strandlof who lied about being an Iraq war veteran.

[20] Strandlof, 32, was charged with five misdemeanors related to violating the Act – specifically, making false claims about receiving military decorations.

U.S. District Judge Robert E. Blackburn issued his decision rejecting the prosecution's argument that lying about having military medals dilutes their meaning and significance.

"This wholly unsubstantiated assertion is, frankly, shocking and, indeed, unintentionally insulting to the profound sacrifices of military personnel the Stolen Valor Act purports to honor," Blackburn wrote.

Beall points out Strandlof wasn't charged with stealing money meant for the veterans group, adding that laws are already in place for those crimes.

"[21] John Wagner, executive director of the Warrior Legacy Foundation, a veterans group that lobbied for Strandlof's prosecution, said he will push for an appeal.

[26] "The right to speak and write whatever one chooses – including, to some degree, worthless, offensive and demonstrable untruths – without cowering in fear of a powerful government is, in our view, an essential component of the protection afforded by the First Amendment," Judge Smith wrote.

[27] On March 21, 2011, a majority of judges in the U.S. Court of Appeals for the Ninth Circuit refused to rehear the Alvarez case en banc.

[30][31] In United States v. Alvarez the majority held that the Stolen Valor Act was an unconstitutional abridgment of the freedom of speech under the First Amendment.

[30][31] Justice Anthony Kennedy's opinion in United States v. Alvarez cited that "a Government-created database" is "at least one less speech-restrictive means by which the Government could likely protect the integrity of the military award system."

"[32] In response, President Obama announced the creation of the DoD valor database, or valor.defense.gov in July 2012, saying "this week, we will launch a new website, a living memorial, so the American people can see who’s been awarded our nation’s highest honors .

[38] The Act makes it a federal crime to fraudulently claim to be a recipient of certain military decorations or medals in order to obtain money, property, or other tangible benefit.