I'm not sure that works. The state can stop me from comitting harm to other people, whereas you might not be able to. For example, the state can arrest me for stealing a candy bar from a store, but you probably could not (unless you were a store owner).
I can legally keep you from murdering someone. When it comes to teaching your child work ethics or morals or your beliefs, that is none of my business.
Nobody is trying to stop him from teaching his kids ethics or morals. He's committed insurance fraud and put his kids in dangerous situations.
Insurance fraud and child endangerment are what made America great, dagnabit! (end loopy libertarian argument)