Like the Phoenix lights.
Personally, I am absolutely satisfied with the explanation that the Phoenix Lights were military flare testing.
(a) Lt. Col. Ed Jones of the Maryland Air National Guard has twice confirmed to media he was involved in a night flare drop from A-10 Thunderbolts outside of Phoenix
(b) I wish I could find it off-hand, however, a KNXV news helicopter photographed a known and confirmed nighttime flare drop happening over Luke AFB in 2008 against amateur footage of the Phoenix Lights and the two looked absolutely identical. I need to check the KNXV web archives ... it's pretty astonishing how on the mark the two are.

This is another thing that just screams fraud at me.
Aside from the fact there is no "Department of Naval Intelligence" (it's the Office of Naval Intelligence), in U.S. government divisional naming hierarchies, the prefix "Department" refers to a cabinet-level agency. So, even if there were a 'black' organization paralleling the real one, one would imagine they would be the Bureau of Naval Intelligence, the Division of Naval Intelligence, the Section of Naval Intelligence, or anything other than "Department."
And why would they stamp their ID badges with MAJ (obviously a reference to Majestic, MJ-12)? I know I usually just toss my work ID badge on a table or the kitchen counter or wherever else when I get home. Stamping an ID badge with MAJ would necessitate that the badge itself be kept secret, which would kind of defeat the point in having it. However, it does feed into the UFO mythos.
According to this, Lazar took a polygraph. And passed. Interesting...
That is interesting. I didn't watch the whole story but my question would be: who administered the polygraph? With alien abductions you often find the hypnoregressionists are vaguely referred to as "qualified hypnotherapists" or "certified hypnotherapists." In many states, becoming "certified" as a hypnotherapist involves passing a multiple choice test and paying ten bucks to the state.
However, if the polygraph was administered by a legitimate and qualified tester that does raise an interesting question. Obviously someone can lie through a polygraph but it's not easy. So that would seem to leave, as options:
(1) Lazar has an exceptional talent for fooling polygraphs,
(2) Lazar's story is true,
(3) Lazar believes his story is true