Can Using a Site Name as anchored text still penalize?

[chabbs]

I've been reading on the subject of Latent Semantic Indexing (LSI) and have a question. I hope someone can answer.

I understand the concept of varying anchored text to get the maximum benefit of inbound links. In my quest to build inbound links I have also sought brand building. My preference is to build a brand name over getting results from Google or any other search engine. But, I do appreciate the traffic that comes from the search engines and do not want to raise any flags with any of them.

So my question is; with consideration for Latent Semantic Indexing (LSI), can having many inbound links with the site name be considered spam and eventually result in a penalty?