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Your post seems a tad bit odd to me.
These were not paid listings so where did the actual results come from?
Do you mean that they did not pay the regular click price, or they did not pay extra to be listed on the top.
I do not deal with GoTo as I do not consider this SEO, but I think it is time that I do start to consider using GoTo. I have done some research and taked to some people and realized the benefits.....but this is off topic.
And is this a legitimate technique?
NO, this is not a legitimate technique, by any standards. How can you justify using the same content nine times? I would have to assume that there is something else going on between GoTo and the website.
They are not promoting these additional domain names in anyway and are not submitting them to search engines so if they were to be penalised in the search engines, I would consider it to be a significantly unfair practice.
Luckily we managed to fire him and get some new focus into the business, so the websites have been redesigned to actually focus on some keywords associates with our business.