I do not know the full story about this but this is what I have heard.
We are working with two brothers (actual blood brothers) who were duped into a clandestine lodge that operated for a short time and conned out of several hundred dollars each. This clandestine lodge was apparently formed by men who may or may not have been Masons. Until we met them Grand Lodge had only heard rumors about this clandestine lodge. We don't hold it against them that they were conned, we are just helping them start again on the correct path. They are just starting over as EAs.
This is the only situation I know of so other circumstances might be handled differently. From what I understand they thought they were joining a regularly constituted lodge and by the end of MM degree they realized something was wrong.
Ours is similar Bates. Our guy was raised in Germany, in a lodge he said was "recognized" by the GL of Oklahoma. He wanted to transfer to us, after about 10 years of inactivity. I was hoping he was ACGL, who has a lodge in Frankfurt and which we do recognize, but neither they or the GL of OK have any record.
The PHGL of OK, stated that they "have no Mr. xxxxxxxxx
in good standing (emphasis theirs), but wouldn't say that he had been made a mason in the PH lodge.
I hope the guy will want to join, even knowing he has to start at EA, after being a PM.