Legal Question in Landlord & Tenant Law in Iowa

What can happen to someone who lies on a lease about number of tenants?

First off, this hypotethetical situation is not about me. Let's say someone gets a job as a property manager at an apartment complex and gets free rent for performing their job.

They have a significant other and 5 children in the apartment they get to live in rent free that is only a 2 bedroom apartment for 7 people. They tell their boss/landlord that 2 of their 5 children live with them, but their 3 oldest children live with their grandparents.

This is all laid out in the lease agreement, but in actuality, all 5 children do live with them. Also, the 3 children in question must hide contantly if there is ever a knock on the door. The oldest child is sometimes seen with them doing various duties around the complex and they told their boss/landlord that the child is their cousin and has the child call them by their first name so as to act out the situation as believable.

Not to mention the horrible distress and confusion the children have to endure, what sort of laws would this person be breaking if the truth was ever found out? Also, how would someone go about turning in information such as this anonymously? Frankly, this person only cares about themselves and only needs the older children to help them watch the younger siblings. It is so unfortunate what they have to go through in that crammed, small space. Please help!!

-Concerned

Additional Details

I do I have proof even though I don't live with this person. And I don't know the exact complexes (I am researching that at the moment) otherwise I would have called their boss already.

AND, no I am not in a position to help this person as a friend since it is a poor economy at the moment and because they only care about themselves and not their children. The children are staying with the tenant's ex, their other parent at the moment and they are a wonderful parent. They want full custody but fear if they get DHS invloved because of the bad parent's neglect, then yes it will get worse. I hope this has clarified the question more.

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