In about 2001, Khouri, Toliopoulos and their children moved to Australia, from where she published a non-fiction account of the supposed honour killing of her best friend in Jordan.
After the revelation of her literary hoax made headline news, she moved back to the United States.
Knox further revealed accusations that Khouri had left the United States while being investigated for defrauding an elderly neighbor.
Things were further complicated for Random House Australia, because Khouri was sponsored under the category of nomination for distinguished talent in 2002.
Khouri said she would co-operate with all requests to provide documentation and was said to be preparing to publish her next book A Matter of Honour in November 2004, again by Random House.