Welfare fraud question?

My husband just found out that his ex with whom he share 50% custody has been collecting cash aid for the past 10 months. He now has to pay back almost ,000 and they now started garnishing his wages making it nearly impossible for us to get by. He has two children with her and since they were sharing equal custody she declined child support because it was supposed to be a 50/50 effort. The thing is that when she was collect she was living with her grandmother who did not charge her rent was and still is paying her car 2 types of car insurance, food, clothing, and over all needs for her and the kids. Even paying medical dental bills for her (not the kids) and giving her money for gas and to take the kids on outings. So my question is does this constitute fraud? Because she was not reporting the money or financial help she was receiving? Should we go to the DA with this info? I mean if we do bring this up she may go to jail leaving the kids without there mother. I mean we can afford to literally pay for her criminal activity! We still need to support the kids on our time as well. Are we wrong for doing this? Also she has since been asked to leave her grandmothers about 2 weeks ago and went to her moms house but was kicked out of there yesterday. Shes now going house to house and asking us to keep the kids longer should be file for temp full custody. I forgot to also mention shes lost custody twice cause shes had 2 open cps cases on her for neglecting and abusing the kids. We want her to do right by herself and the kids but were tired of trying. Its taken its toll on us and more importantly the kids (there 8, twin girls) ANY HELP or ADVICE????
My husband has not failed as a parent He has always had custody of his children and never paid support because it was a (TEAM EFFORT) and when cps took the kids they came to us full time. She went through her reunification process and earned her custody back. These kids are not toys nor a game they need there mother as they need there father we gave her the benifet of the doubt which wasnt stupid it was the right thing to do. Were not here to play games in court. But yes its at a point were there is no more room for chances. Some men arent dead beats and fyi he didnt leave her she left him.

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