Rosenblat told his agent, Andrea Hurst, that he made up the story of meeting his wife as a teenage prisoner in a camp in Schlieben, Germany. The story is at the centre of Angel at the Fence, The True Story of a Love that Survived, a book that has been heavily promoted by Oprah Winfrey.
Hurst said Rosenblat's story about being in the concentration camps and the survival of the writer and his brothers was true but he had made up the love story.
"Berkley will demand that the author and the agent return all money that they have received for this work," a spokesman for Berkley said in a statement.
Sources: MTI/AP/Reuters