Pulling a stunt like this can go either way. Some people may take pity on you and help you out (and they're naive), or some people will totally ignore you (and they're cynical). Leroy must be doing something right to get as far as she did.
I'm not advocating pulling scams to get places. And I'm not saying "Leroy" is right to have done what she did. What I am saying, though, is that it's premature to say she did it because that's how publishing works. I think it's more of her problems than the publishing business. Plenty of writers get published without any scams. And the fact that her story made headlines means that she is a rare case (we hope).
There is a big difference between Frey and Leroy, though. When you're writing fiction, the rules really are different. Fiction is about entertainment, and sometimes the "artist" would do anything he or she needs to get noticed. The work, however, is still fiction, whether it's marketed as autobiographical or not. People who buy fiction would care less who the author is, or pretends to be. That's why authors can use a different name/identity when publishing novels. I can call myself "Patricia Inglewood" if I like, and it won't make a difference, because I write fiction. It's a persona. When I go to a bookstore and pick up that novel, I am not going to ask "Is this based on the author's true life story?" All I'd ask is, "Is this a good, well-written story?"
Memoirs and other non-fiction are different, IMHO, because the author's credibility is important. Frey's credibility is shot because he didn't just fudge fuzzy memories, he deliberately made things up.
Both Leroy and Frey are scam artists. But the difference lies in the final products. Leroy's is a work of fiction, made-believe -- so we know things are made up, no matter how "autobiographical" they claim to be -- while Frey's is lauded as a true, personal triumph that is going to inspire millions. Personally, I wouldn't buy either book. But I would be at least curious about how good Leroy's made-up story is -- or is it complete crap.