So has it been operating all this time since 2006?

Most interesting would be a graph of proportion of Google owned. Are they gaining or losing ground toward their goal of getting it all. I could see them gaining at an ever diminishing rate.

While this is probably fraud, it's preying on advertisers, which I'd be prepared to allow provided it did the advertising industry permanent harm.

Why would it be fraud? It sounds to me like they're using their advertising revenue to buy Google shares. What's wrong with that?

"We generate money by serving Google text advertisments [sic] on a network of hidden Websites."

They are not really ads that are viewable by consumers. Most likely bot traffic.

Possibly related:

http://www.behind-the-enemy-lines.com/2011/03/uncovering-adv...

I thought Google was pretty good at detecting that sort of thing.

How about a translation?

"click here english translation": http://gwei.org/pages/google/legalletter_e.html