In the book, A Million Little Pieces, the author, James Frey, tells a story about his life that was later found out to be only partly true. The 
reader, his customer, was essentially led to think that this book was a true account of his life.
Oprah raved about his book and even welcomed it into her famous book club. It was flying off the bookshelves and people became inspired by the story.
But then...
Controversy unfolded when James Frey allegedly "made up" some of the details in his book. Everybody was mad, hurt, and felt duped by this guy. I didn't think it was that big a deal. Ok, he did lie about events that happened in his life, but he's not a reporter for CNN or the New York Times! This is just your average guy telling his story. It was still a good story, right? (I haven't personally read the book, but heard it was good).
Now, in relation to business, let's say a customer service rep fibs and tell you that she owns the product she's trying to sell to you and that it's a fabulous product. You use it and yes, it's great - it works fabulous for you too. So, you go back for more, but come to find out that the salesperson actually never used the product.
Would you be mad? Let me remind you that the product worked great for you. You got what you needed from it, so why the bitterness?
I'm not saying that it's ok to lie, about your life, in business - ever. I'm just saying, give the guy a little slack. I'm sure there are many other people who have lied about their life stories.
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