You buy it as a Group, I understand that, but they got a group discount, because of the volume, not because they were getting them free to give to the B&G kids. They just disguised their identity, not defrauded the ticket office to gain free or discounted tickets. It would be a whole other story if they had gotten free tickets claiming they were for the B&G club kids, and then went as the students. But that is not what they did. They just had to identify as a group to buy tickets. Anyone can do that, I could buy a group of tickets for my employees, or my kids class, or anything. Hell I am sure several resalers do this too.
Only way it becomes fraud is if they claimed the B&G club to gain a bunch of free tix for kids, then went in their place.
Claiming what they did is fraud is a reach. I would be like calling all of us not using our real name on this board or twitter etc being guilty of fraud.