Back in 2008 an HE based colo "McColo" were shut down because they were hosting a HUGE amount of botnet controllers, spamming operations, and similar shady operations. When they were shut off some security firms saw a 50% drop in spam going through their firewalls.
However it only happened after immense pressure on HE and other providers involved by Google, Washington Post and all sorts of other players.
HE would have been aware because large IP blocks were being blacklisted (I heard at one point all of HE Freemont's IPs were blocked by some of the more extreme SBL lists) but they turned a blind eye and/or claimed Ts & Cs were not being infringed.
More here http://news.cnet.com/8301-1009_3-10095730-83.html
I found that highly irresponsible, both in terms of the detriment to their other colo customers who were sharing the BGP-level bandwidth but also from a wider 'being a good actor' perspective.
Given that they are also on a fault line and that good connectivity to Europe is more important to me than Asia, I would prefer to host on East Coast.
I'm actually in Linode's New Jersey and London Colos, and they are both excellent.