Did you report the incident with his hand in her skirt? If not... you NEED to report that. It doesn't matter if "nothing happened" but that it was the starting of something that could have happened. Report and record everything. Keep a detailed journal of what he says about the modelling, and report down all of her behaviours and things she says about it. And pay attention to her eating habits (and listen in the bathroom possibly to ensure she doesn't make herself start throwing up).

It's clearly already having a horrible influence on her. She's interested in it because she wants to feel like her dad loves her... and now she thinks to do that she needs to be "pretty" and in the modelling thing. That's a horrific enough experience for healthy, stable, confident girls in loving families... let alone this poor girl.

And don't worry about her "being bad". No kid is bad - they can just make bad choices. Please don't ever tell her she's bad.... she'll incorporate that into her entire self-image. And if she DOES misbehave at the modelling thing? Well, that might turn out to be a good thing.. maybe they'll tell her she can't come back, and at least you'll have her removed from such a poisonous environment. Get the therapist and social workers involved in this - they should be having some say in what is a good choice or not for her.