Yes, for sure. The shelter didn't vet the "adopter" & should have been very suspicious at anyone taking in so many animals all at once. "Hello?" But in this case, the shelter put someone in charge that was dishonest & had their own agenda. Shelters generally cannot pay great wages & good (dedicated, hard-working & honest) help is hard to come by. I'm a former board member of a local humane society shelter in my town. Several years ago, we found ourselves with a very untrustworthy employee- not working in the shelter with animals, but supervising the thrift store that raises money for the shelter. What a nightmare some employees can turn out to be, no matter how thorough you think you've been when hiring them.
As far as the reptile "rescue"- there's a HUGE difference between calling yourself a rescue & actually BEING a rescue. There are plenty of animal hoarders (for all kinds of animals) with their hands out for any free "rescue" animals that are NOT qualified as rescuers...not even close! There are also plenty who claim to be a rescue to get a tax write off & other perks (free animals, & other donations) that just turn around & sell the animals entrusted to them, keep the donated money, or like in this case, use the animals as feeders.
Never take anyone's word for it that they're a "rescue". Check it out first...demand proof.