DOJ Declares Victory Over Backpage as Judge Sends Founder Lacey to Prison
Freeman writes:
Backpage founder Michael Lacey was sentenced yesterday to five years in prison and fined $3 million after being convicted on one count of money laundering. Lacey, 76, was also sentenced to three years of supervised release, the Department of Justice said in a press release.
[...] Authorities alleged that Backpage generated over $500 million in revenue from running a forum that facilitated prostitution. While Lacey argued that he wasn't involved in day-to-day operations, US District Judge Diane Humetewa "told Lacey during Wednesday's sentencing he was aware of the allegations against Backpage and did nothing," according to the Associated Press.
"In the face of all this, you held fast," Humetewa reportedly said. "You didn't do a thing." The US government recommended 20-year prison sentences for each of the three defendants.
[...] Lacey will fight the sentencing. "Paul Cambria, Mr. Lacey's lawyer, called the sentencing on Wednesday a 'mistake' and said that they would appeal, adding that there was evidence that Mr. Lacey never concealed financial information. A lawyer for Mr. Brunst, Gary Lincenberg, said his client also planned to appeal," The New York Times wrote.
[...] In November 2023, a jury in US District Court for the District of Arizona convicted Lacey of international concealment money laundering but returned no verdict on 85 other charges related to money laundering and facilitation of prostitution. In April, Humetewa acquitted Lacey on 50 of the charges that the jury did not reach a verdict on. Even "after viewing the record in the light most favorable to the Government, the Court finds there is insufficient of evidence to support convictions" on those counts, she wrote.
[...] Backpage co-founder and CEO Carl Ferrer agreed to plead guilty in 2018 and cooperated with authorities on the investigation into Backpage. Ferrer could still go to prison, but his "plea agreement contemplates that he will not be sentenced until the conclusion of his cooperation," the US government has said.
[...] In September 2021, a previous judge handling the Backpage case declared a mistrial, finding that US prosecutors unfairly tainted the jury by focusing too heavily on claims of child sex trafficking in a case that did not involve any charges of child sex trafficking. At the time, Judge Susan Brnovich said she gave the government leeway to mention child sex trafficking, but the "government abused that leeway."
Previously on SoylentNews:
DoJ Lets Cops Know SESTA/FOSTA Is For Shutting Down Websites, Not Busting Sex Traffickers - 20180617
Backpage CEO Takes Plea Deal, Will Testify Against Other Executives; President Signs FOSTA-SESTA - 20180413
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