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Backpage Founders Charged With Money Laundering, Aiding Prostitution (theverge.com)

Federal authorities have charged the two founders of classified site Backpage.com, along with five other employees, with laundering money and facilitating prostitution. According to The Washington Post, the Justice Department claims Backpage took "consistent and concerted action" to knowingly allow ads for illegal sex work. The indictment alleges that "virtually every dollar flowing into Backpage's coffers represents the proceeds of illegal activity." The Verge reports: Law enforcement agencies seized Backpage's servers last week, and co-founder Michael Lacey was charged in a sealed 93-count indictment, which has now been revealed. Lacey, as well as his co-founder James Larkin, were already charged with violating California money laundering laws, although a judge threw out state-level pimping charges. Beyond Lacey and Larkin, the Backpage indictment includes charges against the site's chief financial officer, operations manager, assistant operations manager, and marketing director. It also charges the executive vice president of one of Backpage's parent companies. Backpage CEO Carl Ferrer, who was previously charged with pimping in California, was not charged in this indictment. The Justice Department claims Backpage's owners tried to cover up the fact that most of its "adult services" ads involved prostitution, and that Backpage allowed child sex traffickers to keep ads on the site as long as they deleted age-related keywords. The indictment also claims that Backpage disguised payments for illegal services by having customers funnel money to foreign bank accounts or apparently unrelated companies, or by transferring funds into cryptocurrency. These federal chargers are reportedly unrelated to the Stop Enabling Sex Traffickers Act, a bill that would make website operators liable for illegal content posted to their sites. The bill is currently awaiting Trump's signature.

5 of 256 comments (clear)

  1. Some bad by viperidaenz · · Score: 5, Insightful

    Money laundering: bad
    Child sex trafficking: bad
    Prostitution: not bad. Get with the times USA, It's legal elsewhere.

    1. Re:Some bad by Anonymous Coward · · Score: 5, Insightful

      The money laundering is probably because they were 'knowingly' accepting dirty money from the prostitutes for ads

      As far as child sex trafficking goes, that has become the rallying call of the new anti-prostitution racket because whenever we punish adults for doing adult things... it is 'for the children'

  2. Mixed up bullsnot by Anonymous Coward · · Score: 5, Insightful

    The prosecutors want to claim that the Back Page people were enabling the exploitation of children, but it is regressive laws on prostitution that allow abuse of sex workers in the black market.

    When is our society going to crawl out of the dark ages and provide a safe workplace for sex workers? It is only when the trade is out in the open that people who exploit others can be removed through laws that protect sex workers instead of marginalizing them.

    Back Page was actually providing a way for sex workers to operate without criminals managing them.

    1. Re:Mixed up bullsnot by CRC'99 · · Score: 5, Insightful

      Up next, eBay gets charged for facilitating the sale of stolen goods...

      --
      Sendmail is like emacs: A nice operating system, but missing an editor and a MTA.
  3. Brilliant job morons by Anonymous Coward · · Score: 5, Informative

    They also forced down Preferred411, the site that reviewed sex workers and verified the johns. The site kept things safer for everyone - the customers got to avoid scams and muggings, while the girls could verify their clients weren't psychopaths or serial killers.

    Now it's much worse for everybody, don't be surprised if violent crime goes up. Thanks for saving us politicians.