Google Penalizes MyBlogGuest Guest Blogging Network

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Google has penalized MyBlogGuest, a popular guest blogging network. In a Tweet by Matt Cutts, he made it clear that they penalized a guest blogging network and pointed to his January post about guest blogging.

However, after I personally spoke with Ann Smarty, she indicated to me that the "penalty" from Google, in Google Webmaster Tools, is an unnatural link warning: saying that Google has detected unnatural links to the site. From what I gathered (and I'm sure she will tell me if I am wrong about this), there was no warning about the content of the site or the business model itself (providing a resource for people to post and receive guest posts).