What's amazing, to me, is that we're still reading about it several months into the story. Mahalo is a known black hat spam site, with despicable tactics, and Google continues to apologize on Calacanis' behalf and send traffic to Mahalo.
I think that's actually the interesting part of the story: How Calacanis has snowed so many smart and decent people into doing his bidding.
I'm only speculating (which is dubious at best) but there are 2 probable reasons why Calacanis continues to get away with it.
1) Sequoia funded both Mahalo and Google, so there's probably some leeway granted to Mahalo in that respect
or (my personal favourite)
2) People can get away with a lot more if they're in the public eye and are loud about it. Think OJ Simpson... Calacanis is definitely one that shouts a lot louder than most to get his point across.
Or at least it was the first three times we read about it.