Backpage Owners Sentenced for Prostitution Crimes

A federal judge in Phoenix sentenced the three owners of Backpage, a website known for facilitating prostitution, for their involvement in promoting prostitution and money laundering.

• Michael Lacey, 76, was sentenced to five years in prison and three years of supervised release.
• Scott Spear, 73, was sentenced to 10 years in prison and three years of supervised release.
• John "Jed" Brunst, 72, was sentenced to 10 years in prison and three years of supervised release.

Backpage's Role in Facilitating Prostitution

Backpage operated as a leading online forum for prostitution advertisements from 2010 until its seizure by the U.S. government in 2018. The website's owners used various strategies to promote prostitution, including:

• Reciprocal linking with forums allowing "johns" to post reviews of prostitution acts.
• Utilizing automated filters and human moderators to remove suggestive terms while permitting ads promoting prostitution.

Money Laundering and Shell Companies

The defendants allegedly earned over $500 million through Backpage's operations. To conceal their illicit profits, they engaged in money laundering, creating shell companies in foreign countries.

Federal Charges and Convictions

The defendants were convicted on various charges related to prostitution and money laundering, including:

• Conspiracy to violate the Travel Act
• Money laundering conspiracy
• Concealment money laundering
• International promotional money laundering

Prior Convictions of Backpage Leadership

The convictions of Lacey, Spear, and Brunst follow prior convictions of other Backpage executives and entities:

• Carl Ferrer, co-founder and CEO, pleaded guilty to conspiracy to facilitate prostitution and money laundering in 2018.
• Dan Hyer, Sales & Marketing Director, pleaded guilty to conspiracy to facilitate prostitution in 2018.
• Several Backpage-related corporate entities, including Backpage LLC, pleaded guilty to conspiracy to engage in money laundering in 2018.

Impact of the Sentences

The sentences imposed on the Backpage owners represent a significant victory for law enforcement agencies and the victims of prostitution. These convictions demonstrate the commitment of federal authorities to combatting online platforms that facilitate exploitation and human trafficking.