You were doing so good in your comment up until this point.
Failure to make payroll, proof of actice ongoing fraud, and smoking gun proof of potential wire fraud are all criminal actions. It is also illegal to be aware of a felony being committed and not reporting it to authorities as that potentially makes you complicit.
If I were in her situation, then I would be thinking of what is best for my friends and informing them that the CEO is committing criminal actions so they have the opportunity to make the right choice and abandon ship with me.
Startup loyalty is understandable but that seriously goes out the window where you have smoking gun proof of criminal activity by officers of the company.