When a parent uses your info to commit fraud..

LONG POST, sorry! Lol
I'm just going to start by saying that my boyfriend was not raised by his mother. My boyfriend has always felt guilty/sorry about that. He knows it's not his fault. BUT they don't have a super close relationship. (They are close, but I call my mom like 5 times a day and they aren't that close). I've never been her biggest fan, she loves drama. And if there isn't any going on she will create it. 
So...the other day he got a letter from a collection agency for a $600 DirectTV bill that never got paid. He's never had DirectTV so he called and asked what address the account was listed under. They gave him the address and it was his mothers old address. He calls her and she denied using his info at first, but later admitted it. She has done this multiple times to him, and he has terrible credit because of it. ALL of his bills are ridiculous because his credit is so bad. 
He tells her she has to pay the settlement amount of $330 and she says she can't because she doesn't have it. I told him that he needs to tell her that she can pay it or we will go to the police and fill out a fraud report. He won't do that because he doesn't want he to get fined/arrested/whatever they do for fraud. So he's going to pay it and make her pay him back. We will NEVER see that money again. Like I said, she's very dramatic so when he confronted he she said "well I guess that means you won't let me see my granddaughter." (She says this all the time) and for once I said yes. You cannot see my daughter until the debt is paid in full. 
I feel like I need to say something to her. Would you? 
I kind of want her to know that she's taking money away from our daughter because of her selfish actions.