The intent necessary to prove theft is not an intent to commit fraud - it is the intent to take something that does not belong to you.

A district attorney or local prosecutor will take on small cases to support a local business. I am an attorney, I represented local businesses, and we got the city attorney to prosecute people all the time for writing bad checks in small amounts (i.e., under $20) to the local stores. The police and the city attorney wanted to help local businesses owned by local taxpayers and voters, and simultaneously get the word out to the bad guys that they were not immune from petty crimes in that city.

Fred was right to take it seriously and get it resolved.