The slow down in Cabarete has nothing to do with a clean up. I suspect you are thinking of Sosua and the police action last night. Only one whore house was moved out of Cabarete, the one near Janet's, and they were given notice to leave, moved to Sosua and were shut down in Sosua for promoting prostitution, which is illegal. A clean up has nothing to do with Cabarete's problems. Nor is your conspiracy theory at work here.
All of the north coast has slowed down over the past 16 years. It has to do with hotels being turned into condos, Punta Cana being the focus of DR tourism with no promotion of the north coast, existing AI resorts fell into disrepair, hence fewer airlines flying to POP, that increased costs of airlines flights and caused bad connections to POP for those the remained. And of course all of the bad publicity and fake news did not help tourism throughout the country.
Those are the reasons Cabarete and all of the north coast have fewer tourists than before. Not any government action.