I take issue with the term "creative non-fiction." Perhaps I'd be happier with the cinematic workaround: "based on a true story." The former implies that the incidents contained within the covers are true, more or less...
And so we have James Frey, author of A Million Little Pieces, and the man who got one over on Oprah. If the usually savvy businesswoman doesn't have factcheckers yet, I suggest she hire some damn soon. Perhaps Smoking Gun has a couple of interns looking for work.
The story was also covered in the New York Times (requires registration, but it's free) and by McSweeny humourist John Warner.
Either Mr. Frey is salivating over the additional sales this "bad" publicity has generated, or he's made a quick call to his lawyer to review the terms publishing contract, you know, just in case.