User blog comment:CNBA3/New Arc Idea! Civil War Arc!!!/@comment-1359322-20150116104553/@comment-7418318-20150116123931

He does have a point though. While Phantom Lord might have technically been a legal guild, they too were for the most part a bunch of brutes and bullies (albeit magically talented) that were only held together by the fear of their master. And Jose was violating the law by attacking another mages guild and even intended to hold Lucy as a hostage to blackmail Jude Heartphilia.

In essence the only difference between a Dark Guild and Phantom Lord was the PL's did their misdeeds subtle enough that they didn't get caught.