The statute, most assuredly, was not intended to cover this type of conduct. Intent to defraud implies intent to take something of value from another.
This prosecutor needs to get a life.
These things generally come down to the attitude of the person guilty of the crime. We don't know what conversations have transpired between the parents and the prosecutor. Maybe it is all the prosecutor. And maybe it is a parent that doesn't understand the system any better than the kid does.