Hi:

I don't think Google can automatically protect against this but they are very concerned. I just got back from SMX Advanced and got the feeling from Matt Cutts' session that they like to stop this kind of abuse.

I think you need to document this problem and report through Google Webmasters Tools.

If you feel you can't get an audience I will try to help. This is more then a single client problem. Contact me at Internet Reputation Management

Jordan