Now she's O-for-two.

A second memoir hailed by Oprah Winfrey's media empire was exposed as a fraud when author Margaret B. Jones - who claimed to be a biracial gang-banger - was revealed as Margaret Seltzer, a well-to-do San Fernando Valley girl.

"Love and Consequences" was published last week to generally rave reviews - and on her MySpace page, Jones/Seltzer trumpeted the plug from O, The Oprah Magazine.

A "startlingly tender memoir," read the enthusiastic blurb.

Uh-O!

Publisher Riverhead Books was forced to recall 19,000 copies of the book yesterday after Seltzer admitted her gripping tale of running drugs for a South Central Los Angeles gang was a work of fiction.

"Riverhead is saddened by this turn of events," the publisher said in a statement. "We feel bad for our readers, Peggy and her family."

Oprah's magazine also backed off its praise. "While it was a great read, we now know that it should have been classified as fiction, rather than as a memoir, said Amy Gross, editor in chief.

"Love and Consequences" was the second memoir revealed as a hoax in the past week - the first came when author Misha Defonseca acknowledged that her 1997 book "Misha: A Memoir of the Holocaust Years" was a fake.

More memorably, author James Frey received a nationally broadcast, verbal spanking from Winfrey two years ago after admitting he invented or exaggerated sections of his best-selling memoir, "A Million Little Pieces."

Winfrey selected Frey's autobiography for her Oprah Book Club audience.

Seltzer, 33, was exposed by her sister, who read a profile of the author last week in The New York Times and then contacted the paper. The Times confronted Seltzer, who was tearful and contrite in admitting the deception.

Riverhead Books canceled a planned book tour for Seltzer. The publisher will offer refunds for anyone who bought the book.

The MySpace page set up by the author was yanked, and the voicemail box at her Oregon home was filled yesterday.

The latest scandal came despite the efforts of Seltzer's editors, who fact-checked the story. Riverhead said Seltzer's duplicity included bogus photos, letters and even fake foster siblings, whom she produced to verify her story.

The hoax demonstrates the difficulty publishers face in separating truth from fiction in memoirs.

"One cannot protect oneself 100% from a dedicated hoaxster any more than one can protect oneself 100% from a dedicated terrorist," said Sara Nelson, editor in chief of Publishers Weekly.
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