Captain,
You will not get penalized in ranking, based on this site. If their domain is new, they won’t get any rankings any time soon, so don’t worry on that. In the meantime, make a report of this to Google’s legal department, and sending them an Email for removal is the right thing to do.
Oh yeah, one other thing….try to relax and enjoy Vegas !
Dom,
You make an interesting point. A new breed of detective agency may emerge – an internet spam patroller of sorts. I’d apply for the job, but I’m already working 25 hours a day…..arrrggghhh !!!