Backpage.com CEO pleads guilty to facilitating prostitution, agrees to testify for the prosecution


On Thursday, a federal judge in Arizona unsealed an April 5 plea agreement in which Backpage.com CEO Carl Ferrer admits to charges of facilitating prostitution and money laundering, and Ferrer also pleaded guilty to California state charges of conspiracy and money laundering. As part of the plea deals, Ferrer agreed to testify against former colleagues at Backpage, which the FBI seized and shut down on April 6, calling it a lucrative nationwide "online brothel." Also Thursday, Texas Attorney General Ken Paxton said that the company, headquartered in Dallas, has pleaded guilty to money laundering conspiracy.
"For far too long, Backpage.com existed as the dominant marketplace for illicit commercial sex, a place where sex traffickers frequently advertised children and adults alike," Attorney General Jeff Sessions said in a statement. "But this illegality stops right now." California Attorney General Xavier Becerra called the plea deal "a game changer in combating human trafficking" and "modern-day slavery" in California and worldwide.
Backpage founders Michael Lacey, 69, and James Larkin, 68, have pleaded not guilty, as have five other executives, and Lacey and Larkin are in prison in Arizona while they await a court hearing. Under the plea deals, Ferrer, 57, would spend no more than five years in prison and could pay up to $250,000 in fines. Federal prosecutors say that Backpage, founded in 2004, took over the business of running racy ads for escorts, massages, and other services after Craigslist shut down its adult section under pressure in 2010. Backpage officials say they tried to remove ads for things like prostitution and underage sex trafficking from their site.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.
-
How China is battling the chikungunya virus
Under The Radar Thousands of cases of the debilitating disease have been found in the country
-
Deep thoughts: AI shows its math chops
Feature Google's Gemini is the first AI system to win gold at the International Mathematical Olympiad
-
Book reviews: 'Face With Tears of Joy: A Natural History of Emoji' and 'Blood Harmony: The Everly Brothers Story'
Feature The surprising history of emojis and the brother duo who changed pop music
-
US to take 15% cut of AI chip sales to China
Speed Read Nvidia and AMD will pay the Trump administration 15% of their revenue from selling artificial intelligence chips to China
-
NFL gets ESPN stake in deal with Disney
Speed Read The deal gives the NFL a 10% stake in Disney's ESPN sports empire and gives ESPN ownership of NFL Network
-
Samsung to make Tesla chips in $16.5B deal
Speed Read Tesla has signed a deal to get its next-generation chips from Samsung
-
FCC greenlights $8B Paramount-Skydance merger
Speed Read The Federal Communications Commission will allow Paramount to merge with the Hollywood studio Skydance
-
Tesla reports plummeting profits
Speed Read The company may soon face more problems with the expiration of federal electric vehicle tax credits
-
Dollar faces historic slump as stocks hit new high
Speed Read While stocks have recovered post-Trump tariffs, the dollar has weakened more than 10% this year
-
Economists fear US inflation data less reliable
speed read The Labor Department is collecting less data for its consumer price index due to staffing shortages
-
Crypto firm Coinbase hacked, faces SEC scrutiny
Speed Read The Securities and Exchange Commission has also been investigating whether Coinbase misstated its user numbers in past disclosures