I'd think that if anyone wanted to, they could complain and file, though. Multiple offenses, doesn't seem like the coach or skater care that they are breaking rules?
Would I file? No, I'd call my friend the judge and get her advice.
Would I advise others to file? If the person was on the board of the club, any club, that this skater competed at, yes. Just a parent or skater on the sidelines? Only if this skater was in a competition I was involved in. If you knowingly let it continue, aren't you part of the problem?
We've had smaller competitions (singles, not synchro) where the levels were combined, and called by the lower one. Mostly the adult levels though.
Synchro actually has stricter rules - no team skating up or down, many age limitations and definite MITF tests that must be passed to be eligible. You can test higher than your level (which does seem loosey-goosey, but is also allowed in singles MITF) but you must be of a certain age and have passed a specific level. Open levels are well, a bit more open, but have averages that have to be followed.