Okay, since I only read the excerpt, it sounded like the police were just shutting off phone lines to businesses. It was part of a larger court case. I stand corrected.
Now, you bring up an interesting point with the offshoring stuff. What's to stop someone from 'pimping' from another country via e-mail or Web site? E-mail a pimp in, say the Cayman Islands, that you want a girl tonight and he sets it up via e-mail. What crime was committed in U.S. there? I would bet that the strongest case for the crime was the actual prositution itself, not in the proposal with someone outside the country.