I don't think the developer comes out ahead.. but I do think that the punishment on them should be punitive to the point of causing them to never do it again. Swapping out a fully treed lot (that the owner wanted) with a flat wasteland with a house on it could inequitable, depending on what you value. If they can give her one the same size as hers, fully wooded, that might matter.
Run now. Far far away. Do not pass go, do not collect 200$.