that would probably be the worst. He shouldn't be able to do anything to bad, just don't back down. People like that tend to use scare tactics against other people.
I did confront him... he just told more lies... :P i really have been thinking that maybe i really am better off ignoring him. I'm just afraid of how he will react. I think what bothers me the most was that i considered him a best friend.
I would confront him. If he still lies, or you don't like his answer, I would ignore him from then on. It might be a little hard at first, but he needs to know he cant get away with something so easy. :) I hope that helped...