Why is it fraud? It's an actual apartment that they can use when they are in the city for work. It's not like it's just a mail drop, it's a physical apartment and the employee is on the lease.
You have to be there for > half the year to legally be a resident
My employer doesn't ask me where I've established residency, they ask for my "Home address", and if I can't find anything in our employee manual describing what a home address is other than "where you can receive mail". I don't know what Google's policy is.
You will be violating tax laws by not stating the real location of where you are working.