"Prosecutors had argued that Backpage's operators ignored warnings to stop running prostitution ads, some involving children. The operators were accused of giving free ads to sex workers and cultivating arrangements with others who worked in the industry to get them to post ads with the company. Backpage's operators said they never allowed ads for sex and made an effort to try to delete such ads by assigning employees to remove them and creating automated tools."
"In pleading guilty, Ferrer acknowledged knowing a majority of Backpage's revenues came from escort ads, conspiring to sanitize ads by removing photos and words that were indicative of prostitution and publishing a revised version of the notices. In sentencing memos, both the prosecutor and Ferrer's attorneys say he helped shut down the site through his cooperation. His lawyers say Ferrer provided evidence linking defendants to the criminal enterprise and testified that Backpage's increase in revenue stemmed mostly from prostitution."
Two former Backpage executives, former CEO Carl Ferrer and sales director Dan Hyer, are scheduled to be sentenced in Phoenix for conspiring to facilitate prostitution by selling sex ads. A prosecutor recommended five years of probation and restitution after their guilty pleas in 2018; both cooperated and testified against a company founder during the 2023 trial. Backpage founder Michael Lacey was convicted of international concealment money laundering, sentenced to five years and fined $3 million, and remains free pending appeal. CFO John Brunst and EVP Scott Spear are serving 10-year sentences for conspiracy and money laundering. Prosecutors allege operators ignored warnings, enabled prostitution ads, and cultivated industry arrangements. Operators contend they tried to remove sex ads and invoked First Amendment protections. Ferrer acknowledged revenue largely came from escort ads and admitted sanitizing ads; his cooperation reportedly helped shut down the site and produced evidence linking defendants.
Read at Fast Company
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