Is this welfare fraud and should I report it? My sister has lived in NY (moved from VT) for three years.?

She got married a year ago, and her husband is from CA and lives in NY with her. He has never lived in VT at all, just her before she moved to NY. My sister and I are not close, she is lazy (not to be mean, but she is 24 and has never worked a day in her life). Her hubby is 31 and does tattooingg on the side for cash, he also gets disability from the state of CA where he lived. He still gets it ($600/mo) and also works full time at $9/hr at a job in NY. My parents still live in VT. My sister who is now 4 mos pg, applied for WIC and food stamps as a couple in VT and used my parents address. It is easier they said to get it in VT, but they live in NY! They got approved for WIC and also get $495/mo in food stamps for the two of them. I think this is unfair for them to be able to get all this help when they are not reporting their income or their correct state of residence. To top it off, her husband got in a fender bender a few months back and said it hurt his back (honestly he had the same back pain prior to the accident which is why he is on disabilty!) and they won the lawsuit and at the end of this month they will be getting $66,450 which they are not going to report. It bothers me so much, since at Christmas dinner yesterday my parents who are struggling for their bills my sister owes them almost $10,000 (they paid all her bills, rent, car, insurnance for over 2 years) and she goes over to our father and says, "when we get our lawsuit, we are going to let you BORROW $800 for fuel". WTF! Borrow??? I was so mad I ended up saying, "Borrow?? You OWE them more than that!". Anyway, should I let them get away with this, or let someone know?