If you are not a religious and not related to this person then you should not say anything to her priest because whether or not her priest baptizes is none of your business.
I would like to clear something up...my husband and i introduced her to this priest and recommended her per say as a woman who was interested in becoming catholic. We had many ties with her within the church and she even lived on our property twice to help her out, but now that we see/know this about her we feel it may be our duty because of what I stated above.
I want her to be saved but i don't want her to come into the church as a pretender with our knowledge and that somehow be on our shoulders for not telling what we know.
Would it be any different if someone wanted to be baptized but did not repent of their adultery or alcoholism, etc and you knew but made no mention of it to anyone? Would that person be liable before God? That is our biggest concern...her habitual lying is very concerning.