Well, she hasn't been put in prison for it yet, nor has she been convicted for it yet.

I'm not sure how Michigan works, but often there are misdeeds classified as a degree of misdemeanor or degree of felony. Then a possible sentence is assigned to the degree. A maximum of 5 years doesn't mean that's the usual sentence or even one that's used at all for a particular crime -- it means that the court cannot apply a sentence any longer than that. A vindictive judge cannot exceed his/her authority and impose an unreasonable sentence just because s/he wants to. (Often there are minimum sentences, too.)

I gather that punishments for fake IDs are on the rise around the country to help prevent identity theft and credit fraud.