Backpage.com, once a major online classified advertising platform, gained notoriety for its controversial “Adult Services” section, which became a hub for illegal activities, including prostitution and human trafficking. Despite the site’s insistence that it was merely a platform for users to post ads, it became the focus of law enforcement and advocacy groups who identified it as a major player in facilitating illegal sex work. The site was eventually shut down in 2018, but the legal battles surrounding its activities continue to this day.

Recently, Michael Lacey, one of Backpage.com’s co-founders, was sentenced to five years in prison and fined $3 million. This sentencing follows his conviction for money laundering in a case that linked Backpage executives to the promotion and profit from prostitution.

In November 2023, Lacey was convicted on one count of international concealment money laundering. Although he was acquitted of 50 other charges related to prostitution facilitation and additional money laundering due to insufficient evidence, he still faces about 30 related charges.

Two other Backpage executives, John Brunst and Scott Spear, were also sentenced, receiving 10-year prison terms for their roles in money laundering and facilitating prostitution.

According to Principal Deputy Assistant Attorney General Nicole M. Argentieri, the defendants earned more than $500 million by running an online platform that enabled the sexual exploitation of countless victims. They attempted to hide these illicit proceeds through foreign shell companies, but their efforts were ultimately unsuccessful.

Backpage has faced numerous legal challenges over the past decade, particularly concerning its role in enabling sexual exploitation. In 2017, the company shut down its “Adult Services” section under growing pressure from lawmakers and advocacy groups. Lacey and Brunst are expected to appeal their sentences, with all three executives required to report to prison by September 11th.