It's a shame it has come to this as he seemed like a good guy but if you want to do this sort of thing you need to either play by the rules or make yourself hidden.
It's not just that the USA is a police state.... It's actually the licenced casino's ganging up against the unlicensed casino's.
I would also be frustrated, if I had to pay millions in licensing fee's and the competition comes in and pays NO fees, and still operate.
My conspiracy theory : His operation was tipped off, by his competition.
He should have learned something from the "Seals With Clubs" bust and he did not... He just moved his operation to a NEW domain. { SwCPoker.eu } and this pizzed them off.
Move to one of the islands next time, like the others did... and exclude US players, to be safe.

I doubt anyone was tipped off. He wasn't exactly hiding what he was doing so is understandable if he hasn't got a license. Would you think a doctor practicing without a license was taken down by the police state? Sometimes regulations are there for a reason whether we like them or not.