Here is a cut and paste from the Navy.mil site:
(start) WASHINGTON (NNS) -- Commander, Navy Installations Command issued an announcement reminding all personnel that the photocopying of military identification cards and common access cards (CAC) is strictly prohibited, Nov. 1.

There have been recent incidents reported of commercial establishments photocopying U.S. government identification to verify military affiliation or provide government rates for service. These incidents are a violation of Title 18, U.S. Code, Part I, Chapter 33, Section 701 and are punishable by fine and/or imprisonment.

Although commercial establishments may request to see military/government identification, they may not photocopy or duplicate it in any way. Many military personnel and commercial establishments are unaware of the prohibition and the reasons it exists, which results in this being a fairly common practice.

The only exception to this policy, covered in DOD Instruction 1000.13, Section 6.1.7, is that civilian and military medical providers are authorized to photocopy military ID as proof of insurance for the purposes of providing medical care to DoD beneficiaries. (end)

I like the part of this that states "punishable by fine or imprisonment". This clown should receive both.