These days a lot of providers want picture ID, etc. I don't want to reveal my identity because I am afraid of blackmail/extortion. If such an unfortunate thing should happen, I am on my own, right? I figure because the act was not legal, I can find no protection in LE or the law for such a consequence. Am I right? Or would there be severe consequences to a provider who attempts to extort or blackmail.
Blackmail is a federal offence that is taken seriously. You have some serious big dogs behind you if you need them.
Besides, who says you did anything illegal to be blackmailed? Paying someone for their time, escorting, is perfectly legal!
As Sola already said, blackmail is a separate crime and would be handled as a separate crime.
It's similar to a murder during a drug deal. It doesn't matter that the victim was selling drugs, the murder will be prosecuted.
I do realize you're very concerned with what you have to lose, but consider what the provider has to lose too. If she actually goes through with her threat, she has absolutely no protection from the information you have.
She'll be facing a far more serious charge, just from providing. You have no reason to keep that a secret anymore and it's likely that the local LE would give you a pass so you'll help them get her. Then there's the blackmail charge. You'd also post on sites like TER and TBD about this provider and how she blackmailed you, thus destroying her business. Then there's your civil suit against her. And if she's got kids, you can create all sorts of hell from child services.
I went straight to the local police (the watch commander), and he was VERY interested in getting the guy. Extortion is a FELONY (I don't know if that's just a local offense or something more). And, he was anxious to go arrest the guy.
He wasn't stupid, so I'm sure he figured out what my vocation was, but it didn't matter much to him. To him, the problem at hand was a guy trying to extort money from me by threat, and that's the collar he wanted.
I have to say that I regained some respect and appreciation for the police that day. It wasn't as though they were doing me a personal favor--they just were doing their job, and they seemed to have their priorities in order.
BTW, I called my attorney first, who I had on retainer for any legal problems that might arise for me. It's nice to have someone to call and receive advice from.