I went through this same sort of moral dilemma when my ex-neighbor got arrested.
From my libertarian ethical viewpoint, the stuff he was selling should
not be illegal as long as all the actors/actresses were participating
voluntarily.
But I had serious doubts about
that, especially considering the known felons that he was hosting at his place, and the apparent attempted abduction of my teen age daughters (dogs scared them off).
In the end, he pled guilty to a conspiracy charge. Apparently he didn't want jury members to appreciate his video artwork.
And he is
gone from this neighborhood