I descend from the man who got the new headstone, so I know the records for him.
There was no death record for him and there was no headstone found for him, although there was a headstone with a first initial on it and his last name that could have been for him (and as there was no age at death it could also have been for a woman or a child).
There are no records we have found for the man prior to 1820, so how in the world could someone document War of 1812 service for him? No one knows where he was before 1820.
I am fairly certain that the government has been sorrowfully duped in this case, and what would happen if others decided to likewise get the government to document their family lines by putting up fraudulent headstones? We might find the same man buried in three or more places in various parts of the country.
If someone in the government truly wanted to contact me about this then it would be very easy for that person to get my email address off of Genealogy.com, where it is readily available, and I would be glad to answer in the most courteous and professional manner humanly possible.