Moselen, also an Otaki community board member, was caught after RSA associates became suspicious of his claim to have served in Southeast Asia. They used photos of him wearing the medals and checked with the New Zealand Defence Force, which confirmed he had never served in Vietnam and was not entitled to wear the medals.
The judge said the fine of $500 was not enough and that the 94-year-old law should be looked at again.
Recapping Moselen's history of fraud, the judge said that in 1975 he was sentenced to 15 months' jail for stealing more than $1600 in cheques and cash. In 1990 he stole a $15,000 cheque meant for the Wellington Rugby Union, and in 1991 stole a cheque for more than $17,000 made out to the Wellington Rugby Referees Association, of which he was an executive member.
He also stole $2100 meant for the Titahi Bay surf lifesaving club.
Last month, Moselen pleaded not guilty to a charge of dishonesty for using an Otaki RSA cheque. He was to reappear on that charge next month.
When he was 20, Moselen was sentenced to a month's jail for setting fire to a building in the Northland town of Kaeo.
In October 1959, the NZ Herald reported Moselen pleaded guilty to the fire charge. He told police he wanted to go back and extinguish the fire but the alarm sounded and it was too late.
Moselen had just opened a news agency and blamed business worries for his actions.
His counsel, Mr J. Bradley, told the Kaitaia Magistrates Court that Moselen had "started too young in business" and "he could not sleep without sedatives and was in the first stage of a nervous breakdown".
The judge said Moselen should obtain psychiatric treatment.
Moselen did not return Herald on Sunday calls.