The publishing world is overflowing with scammers exploiting new authors struggling to publish a work, format a work, edit a work, design a cover, or choose between publishing a print book or an ebook or both.
Authorhouse is renown and reviled by authors for scamming thousands of writers out of money. Penquin decided to buy Authorhouse and semi-legitimize the Authorhouse scamming system; same scam, different bull making the manure.
A quick google search on a phrase like “ebook scam” or “publishing scam” (without the quotes) returns enough convincing evidence to warn authors about the various scammers prowling the ebook/book publishing jungle.
One blogger has put together another string of pearls on these scammers, focusing on Penquin books and Authorhouse. His article contains links to sites supporting complaints about companies exploiting authors, as many such bloggers including myself have done over the years, but it is well written and has a goodly amount of comments for new authors to enjoy.
The link to this blog on Penquin, Authorhouse, and author exploitation is here.