I don't doubt it's criminal the way she did it, but I'm not so sure it would have been criminal had she done similar things to securities on the stock market. I mean, isn't this exactly what those people do?
But is the discussion purely a legal one? Or are we also discussing a moral/ethical view that looks at a given behavior by comparing it to other behaviors to notice times when there are inconsistencies in our laws?
It's important to discuss apples and apples though. Insurance is not a securities contract. So it can be completely reasonable that treating insurance contracts like options is illegal, immoral, or both. And achieving a moral end through immoral means rarely has no effect on the end. Even assuming her activity is moral (not conceding the point, but for the sake of argument), I have a hard time thinking it is still moral when she has to use fraudulent identities to get to that end, especially when that end is simply enriching herself.
Perhaps we should talk about what actually happened - this woman defrauding companies using fake identities - and not hypotheticals we're making up.