Reports Publishers Weekly: "Berkley Books [a division of Penguin] is cancelling publication of Angel at the Fence, after receiving new information from Herman Rosenblat's agent, Andrea Hurst." The New Republic did the original investigative reporting on the veracity of the story.
Rosenblat has to give all the money back, and the movie is obviously not happening. He's been on Oprah twice—no word yet on whether she will invite him back on the show for the express purpose of scolding.
(Rosenblat really was in a concentration camp when he was a boy, though—in the words of certain Jewish grandpas, "First the Holocaust, and now this!")