I would say that this is pure horse sh*t (the non-hypothetical kind.)

LE wouldn't scare you off, they would try to lure you in and bust you.  That's what they get paid for.

Here's what you do (hypothetically speaking, of course).  You ask the copper for his phone number because it's a bad time to talk and you want to call him back.

I'll lay 10:1 odds the bum will hang up or make some phony excuse that he can't give out his phone number.

This sounds like a bad practical joke or someone trying to stick it to this provider.

Prostitution is a misdeamenor most everywhere, but if she was operating a business with other gals, she could face a felony for operating a house of ill repute or some other baloney like that.  It depends on where this is.

(still not a lawyer, hypothetically or otherwise)

I gotta agree, LE does not act this way.  Either they'd let you sweat and not contact or they bust you.  After the fact, it's too late to bust.  
Cops don't use slang like
"handcuffs", "bracelets", etc.  They're say you have violated city ordinance xyz and are under arrest.
I'm inclined to think some guy got hold of her phone...  BF or john grabbed her phone??  
Personally, I'd be something of a white knight and contact the lady to ask WTF?  Does she have a web site, e-mail...  you do have a anonymous e-mail right?  Or a hobby phone?  

Sounds to me like the provider might have a problem with a former SO, or possibly a stalker client.  

Your friend might consider an e-mail to the provider from his anonymous account.  He should also exercise some caution visiting the provider again if he discovers this is the issue.  These things can get ugly.

All the above post have been very helpful and have gotten me to think of some interesting scenarios as to why this situation may have occurred.  I thank you.

I would still like to seek legal counsel to have a more detailed conversation and feel it would benefit me better with someone who is familiar with the "hobby".  I reside in the New York area.  I would appreciate if an interested lawyer could contact. Obviously this would be paid advice and I am willing to do so.

You can contact me through this board or at "[email protected]"

The additional details provide hint that there is a problem of some kind.  I still don't think that LE has anything on her.  
More likely an Ex SO or stalker.  The fact her reviews are gone...  she'd decoded to so under the radar.  (If she'd been busted, they'd still be here.)  
If some stalker, ex SO or whatever there's an increased risk that some sh*t might go down that might draw you into a situation you'd not want to be involved in.
No need to contact her, since she's aware of it (in order to get her reviews taken down.)  
Since the lady is not advertizing, wants to avoid attention possibly for her safety, then your friend should respect her intention.

Sounds to me like

Seems to me like the provider had a male friend of hers call to get rid of your friend.
Maybe she was tired of seeing him, was ready to move on and he would did not want it to end.
Not saying, that your friend is a weirdo or anything, it's just sometimes one loves more  and one takes more, then the other.

Maybe this girl was just a chicken shit and took the losers way out, hiding behind a deep seeded fear, like getting busted.

LE does no such favors.  They are here to bust people and make their lives a living hell, so they won't want to do the crime again.

They have to justify their pay.

Not hand out warnings.

I am sorry to say this, but it is more likely then not.

SexyMadelineShaw