[Groesbeck Hurricane]

FWIW I would have had a STRONG talking to my children about right and wrong behaviour.

I would have lost it at her, hopefully NOT in front of the kids. She will likely sour the relationship between your children and cause trouble for the children as time plays out. I can so easily remember a family like that down the street from us when I was growing up. Unsupervised kids with constant visits from law enforcement. My folks (and most) did not like the way the family acted. Children acted out against us as much as they could to get back at us.

Continue to be vigilent with your children! Not all parents are, not all parents are responsible enough to be so. I also like the idea of getting photos of her doing this. Child endangerment at the VERY least.