PS Im in the UK.
I encounter the same problem with one or more competitors and have spoken to google about it, they promised to investigate on this matter and got back to me twice about it, but STILL everyday i see the same stuff happening over and over again and taking screenshots of it.
IMO google does not take down accounts of people that spend good money, no matter if they violate the TOS or not. I have seen this to many times.
Guess the only way to beat them is join em .. :(
Make a clear case. Document everything. Identify the exact search term. Take a screen shot. Identify the exact ads and their landing pages.
C'est la vie