With any company the size of Google you have to be fair and ask yourself was this a decision sanctioned by the companies top decision makers or was the decision of some employees more concerned with bonuses or making quotas?
I have a hard time believing that the top Google decision makers were sitting around in a room and saying "Let's risk breaking the law and offer ads for illegal drugs for $200,000"
I guess it is possible but I think it is more likely that this was a department head being a moron. I agree that in either case the person who made the decision knew they were in the wrong. I just can't see the real shot callers doing it.