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How can this person improve their situation?

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  This is the problem the employee is having:  
The COO and primary manager of the company recently hired a relative of his wife's friend. This person is in a 40 hour a week job. However, she is in the office anywhere from only 6 to 7 1/2 hours per day, sometimes less. She does not put any time off on her time card, so she is stealing time/pay. While in the office the is on her cell phone 80 % of the time, she watches movies streamed in through her computer, and will be on the internet shopping/surfing all other times. If she produces 4 hours of honest work a week that is a lot. This situation is bothering a lot of people in the area in which she sits. The complaints have been brought to the department lead from another supervisor. Because of the employee's relationship with the COO, the department lead will not speak to her or deal with the issues. The situation is extremely bothering to me and is affecting me.

Maybe I am overreacting to the situation, but the blatant actions of the employee is causing me physical stress issues. I've discussed this with many people and am told 'life is not fair,' 'just ignore it' 'maybe she'll move.' None of these have helped me and morale is bad. I enjoy the work I do very much, but this situation is horrid. I am thinking of asking for my work area to be moved out of that area. What if that request is not agreed to? Any help and suggestions about this problem would be greatly appreciated. Thank you.  


  Please suggest some advice for this employee:  

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