Here's what I remember:

Somebody did almost die at the Nutcracker Suite. I think it was "Nutcracker After Dark". I don't know if it kicked off the raids.

I heard the following from one of the Dommes at Rapture after it was shut down: An Undercover cop arranged a session at Rapture and asked her if she would "fuck him". The Domme he was speaking to, thinking in terms of pegging, said "Sure, I'll fuck you". The cop then pulled out his badge and called in his backup (i.e., the raid), and the place got shut down.