Probably want to sue.
I hope they go through with having a third party non-family member taking care of the money to make sure it goes to Victoria's medical care. With so many offering free medical care, I 'd like to see a professional offer to do this.
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And if that child had proper medical insurance this would not have been necessary. The surgery would have been covered. I do think the grandmother should be charged with fraud unless she can offer some shred of actual evidence. But I also think the court should show leniency because it's not like she was trying to get herself something frivolous. She was trying to get necessary surgery for her granddaughter.