The main problem I have with the poor SEO tactics is that JF hired a Black Hat SEO. You do not do that without knowing a little something about what they are going to do for you.
Sorry – But there is NO WAY that they ‘blindly’ hired a SEO and gave them carte blanche to do what they wanted. There WAS knowledge and there is no point disputing it.
Just fix it and apologize and be done with it.
As far as eCogra. They are just laughable IMO. 888 has no repercussions while JF does? Give me a HUUUUUUGE break.