This would mean catching and trading Pokemon was illegal in this area, in which case Jenny should have just kept Ash tied up. Selling Pokemon for money wouldn't be a crime."Smuggler" suggests to me that the crime here is in how he's selling pokémon, and who to. As a real life example, take tortoises. They can be bred and sold in captivity, but it's illegal (At least in the UK) to import wild tortoises.