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You should probably try to secure some evidence or witnesses before escalating the issue. It'll go a long way in helping your case
Document everything that you can. You're going to need it if you want to get anywhere with your case
As you said yourself, he is a veteran, he documents what happens, and when you have 2 or 3 pieces of evidence, to denounce what is happening, you cannot deal with racists.
It is a very sensitive issue, I believe that no one should be a victim of racism, go to your superior and report it immediately