Looks to me like a mom & daughter made something together and put it on the internet.
I live in an affluent part of San Francisco (Noe Valley) and last week saw lots of rich moms selling girl scout cookies with their daughters, mom doing all the "work." Is that fraud?
Also, nowhere do I see anything in the article (or the CNN article it links to) about the mom's finances. Just because you have a business does not mean you're rich -- it often means the contrary.