Quote: she evidently takes drugs from the drug closet and from drug reps and then gives them to her family and friends. Ummmm, Ellie, you would know, is that illegal? I would guess that it would be.....
Does she have anyone's permission to do so? Is she licensed to dispense them? That would make a difference. We sometimes used to let our nurses take some samples of drugs that were prescribed to them, but only after asking one of the doctors. Are these drugs that can be abused (pain meds, muscle relaxants, ADD stimulant-type drugs)? THAT could definitely get her fired - but you'd have to have proof.
Frankly, with your H leaving such a huge electronic trail of emails etc at work with her, I'd be afraid she could get him fired too, unless you had a way to arrange for someone else to catch her in the act without it being traceable to you.