No. I don't think the state "set it all up". I think the state saw the video at first and went "ho-hum". Then they discovered that she had this strange lifestyle., and they began to go "Hmmmmmm". Then they realized that her strange lifestyle (much like Randy Weaver and David Koresh) was all about existing outside the bounds of the loving, caring, tender arms and watchful eyes of Big Brother. That is when the state went "oooohhhhhh". They knew then that they could take her down, wipe the floor with her, increase the goodwill of govt. and state agencies and bureaucrats in the minds of the sheeple, and forever show that people who live outside the scope of the state (and keep their kids outside the scope of the state) are just plain eeeeeeeevil! Then the media frenzy began.
Nonsense. This woman would be toast if she were the wife of the mayor of Mishwaka, Indiana.
The fact that she's part of a roving band of scam artists does, in fact, mean that this girl is part of a group which is teaching her a life of crime. Her own mother is likely passing along the tricks of the criminal trade to her.