Yes, I reported it to the police but they said it had to be the school that called them. Everytime she does something, it's treated like the first time! My wife enables her, even lying for her and taking the blame sometimes. Thank you for contributing to my thread.I assume you reported the find to the school. Did you also report it to the police?
Like others, I suggest that you protect your child and leave. Your wife was probably feeling like a failure herself, and hoping that you could fix the situation - even though you'd then be an overstepping stepparent. (Even the parents of model students can feel like failures... And your step kid is no model student.)