You could check with the university, perhaps by phrasing your questions hypothetically. I think you should report this person. Sounds like she's incompetent, lazy and unethical and shouldn't be practicing.
You mentioned she studied Psychology - this sounds terrible and unfair for any patients she might be counselling etc. You would need sufficient evidence to prove what you said is true though. By the way, why would your other friend spend all that time and effort to write essays and an entire thesis for her? Money?
I cant really gove you an answer,but what I can give you is a way to a solution, that is you have to find the anglde that you relate to or peaks your interest. A good paper is one that people get drawn into because it reaches them ln some way.As for me WW11 to me, I think of the holocaust and the effect it had on the survivors, their families and those who stood by and did nothing until it was too late.