Is he right for thinking he won’t get caught?

I have a friend who is a single parent. Other parent passed away (health related) so he had to leave his job. Has been on government assistance. Receives social security for both (autistic), payments for moms death (I think social security), tafdc,SNAP, and subsidized housing. for almost 2 years now (current) he has been working with a family member, so he’s a brokers assistant I guess. no he doesn’t have schooling anything in real estate, his cousin just owns an agency and put him in there.

so when he started working there I said hey, you need to report this to all these agencies. he didn’t. he kept saying I will figure it out, I can have my cousin say it’s an internship. and I’m like oook. now he’s being paid brokers fees, no he still doesn’t have a license nor is an actual broker, but he’s been getting paid by home base, big amounts of money. again I said hey, you need to report this. nope he didn’t. so now he’s thinking about getting his license (no he hasn’t been to college for this, nothing just going out on a whim ) and he wants to advertise himself and I’m like oh lord dude you’re going to get in some trouble. you’ve been depositing big lumps of cash, you’ve received checks by government agencies (homebase /brokers fee) and you’ve been soliciting your services with neighbors, so eventually it’s going to get out to property management. Am I wrong for thinking this will blow up in his face? Or will he maybe get over on them? I don’t know but I’m concerned because those two kids will have nobody. And his cousin is telling him he will be moving into sales. And I’m like how are you collecting brokers fees and you’re not a broker? and then now you want him to sell houses? With no license? I’m so lost. But his cousin uses him to do all the work he doesn’t want To do. So I can see why he is bartering him with money promises. I am concerned for those kids if he gets in trouble. I’m just confused tbh