New Zealand Law
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Flatmates do not have the protection of tenants under the Residential Tenancies Act. So the relationship with her flatmates is an issue of contract, and so if she wants to leave the flat she would just need to give notice. The way they have dealt with this is unfortunate, but is unlikely to be able to prosecuted as fraud. It seems to be the state of passive aggression and a failure of communication which is not really fraud. Sometimes some low key mediation can bring out the real issues, without a full battle. If she is unwelcome there, she may be best to leave and not stress about the flatmates and their games. But mediation may be one way of resolving this without getting into a confrontation.