Site Took a Nosedive

[PhoneMistress]

My main site took a major hit last month. I have been trying to figure it out and finally broke down and asked on Google's Webmaster Central forum.

The first response stated the following:

Your site is a link farm for other porn sites.

Then the individual proceeds to cite several free sites I have listed at the various link lists. It's interesting because my phone sex site has nothing to do with the free sites on the domain. Matter of fact I don't believe I have ever linked to the sites from the phone sex blog. So, are link lists considered link farms? Last I heard that was not the case. Does any one have the latest information? What I really want to know is whether link lists pass the test for Google's definition of link schemes?

Any help will be appreciated. Thanks.