Tough one. He does need help. I would be worried about the harm he might cause someone else.
I ran into a situation where a person close to me was impersonating a POW and put himself in every combat situation since 1974. I found out he was only in service for 6 months and not in the Army as he claimed but in the national guard. This was a person who got away manipulating the system with his lies and hurting others as well , without getting into details, be very careful and take measures to protect yourself. Look how far he was willing to go to reenlist. Mentally sick but not stupid.
I have been dealing with one for awhile now, and the measures that I had to take to keep myself safe have been drastic. Stay away.