No one can offer virtual private servers for this amount. Further, if you are looking to provide services which are not legal in the US, it is unclear why you would be looking to pay less then the industry average. Illegal activity always has an added overhead, check out the Sopranos or something.
On the same topic, this forum is full of complaints of companies folding, and as a result, their data is lost and significant downtime is introduced. However, I think people are realizing that quality costs money, and the cheapest option is usually the least reliable. This holds true for most commodities and services, not just hosting.
How to spot a hosting reseller:
a. ping "web-hosting-company".com. Search that IP at arin.net.
b. the company displayed by arin.net has full network and likely server control and is the real provider
A 99.999% SLA means nothing when 90% of the service continuince is beyond the control of the reseller.