Well..for starters, choosing professors based on testing style is absolutely
not cheating in my opinion. One could argue that publishing tests to those 'Rate this Course' websites is unethical, but I've known professors to publish their materials themselves to those websites for various reasons. I've actually had a professor direct us to those published exams to use as review materials. I've had other profs say "Just don't
sell this exam, because it's not yours to make a profit off of." I won't get into whether or not reusing the same test questions for the past 10 years is 'good' or not, because that's another discussion on its own, but that's on the professors, not the students. It could vary greatly from school to school, but I don't think you should label someone as a cheater just because you think they're being selective about who their professors are/how the courses are taught. There's more to all of it than you may think. Of course, it could also be as plain as "She's buying old exams off of people who weren't supposed to take their copy home in the first place" or something..but unless you know that's the case, careful with the 'cheater' label (this is separate from her fabricating experience, though).
Professors aren't idiots. They know damn well that their exams are circulating, and still use the same questions. Again, whether or not that's 'okay' is another discussion. Is it unfair to the students who choose not to use those materials? Maybe, but I know a professor who would call you an idiot for not using what has been made available to you. Not all professors think that way, but some intentionally do not prevent this stuff from happening.
This is just an aside, but you probably sound naive to others too. We all had to start somewhere. Cheater or not, we were all naive at some point, and still are in certain ways. You'll probably sound naive to some extent in your own interviews.
VMCAS doesn't do much to verify authenticity of applications, for future reference. They just verify that your transcripts match your course entry section. They're basically a middleman in the application process.
Just one last thing...you'd be surprised what BS people say when they're trying to intimidate someone. For all you know, she didn't make up one single thing on her application.