I'd say that they are blatently violating the TOS. Perhaps Google just isn't aware of this?

Cheers,
Suzanne

I know once they're certified "Big Guys", called Adsense Platinum or something like that, they're no longer subject to the auto-ban bot. I wouldn't be surprised at all if thing like this are conveniently overlooked.

And even if they do get caught they just get a little slap on the ol' wrist unlike the small fries that get lifetime bans attached to vague emails.

First, I wouldn't call that site a "big guy".

Second, that type of practice isn't allowed even for premium publishers. As a premium publisher, or even a regular publisher with a REAL quality website, you might just get an email or warning about it. If you just have a bunch of crap websites, or 1,000 exact-match-domains attached to your adsense account, they'd be more inclined to show you the exit.

Google relies heavily on reporting for offenses like this, so it may not have been reported yet or the just haven't gotten around to reviewing it.

Just quit worrying about other people's sites and concentrate on making your own better.

Yea no matter how you slice it thats against Google's rules. No matter how much Adsense money you make they don't ever want webmasters encouraging clicks unless the user has genuine interest in the ad.