301 won't pass penalty. If it would work just as David said, I could 301 that domain to a competitor's domain and smash him down.
But David is right, this is not correct way. It's bad technique, sometimes working well but you never know when it will end and then you'll get hit.
For me the best what you can do is to take care of your backlink profile. If reconsideration request didn't help you must build stronger backling profile, take care of On Page SEO and OFF Page SEO and you will need time and patience.
I have had many situations like yours and it's always pain in the ass.
Ohh, one more thing. Take a look at your analytics and compare to the Google Update timeline. Then you will know what kind of creature caused this mess
If you have some more questions I'll try to help.
Thanks,
Jakub.