The forwarding number was wrong but the Austin, Texas part was never proven though right? Was he using a Texas IP/VPN/fresh browser when searching results for it?
A good way to check is using the "Ad preview and diagnosis" tool in Adwords. You can set the location and see if your ad comes up. It's also a good way to look at raw search results (before google factors in your personal browsing history to serve up customized results).
Location targetting is a little trickier than just setting geotargetting in Adwords. The targetting issues could be Google or could be their account setup. Hard to say without review. Considering there was definitely a bug with the phone number, they should have Google review their account fully.