Virtually all our big keywords/category names took hits in rankings on the day of and day after this recent Penguin update so that makes it seem like it's Penguin. On average they lost about 5 positions, but some lost as few as 1 and some lost 15+. But it clearly affected our whole site. Our idea was to test out removing the links on one subcategory and if it worked to do it for the rest of the site.
The guy they had building links for years did all the typical stuff - directories, spam sites, reciprocal linking, links with non-relevant sites, etc. We sell outdoor products and I've found backlinks on penis enlargement sites, anchor text for products we've never sold, etc. The backlink profile is very, very bad. Even if Penguin wasn't the culprit, these backlinks have to be hurting our rankings.