Cracking Down on Backpage: The Downfall of a Notorious Online Marketplace

Michael Lacey, a co-founder of the lucrative classified ad site Backpage.com, was recently sentenced to five years in prison and fined $3 million for a single money laundering count. This marks a significant development in a sprawling case involving allegations of a yearslong scheme to promote and profit from prostitution through the website's classified ads.

Exposing the Dark Underbelly of Backpage's Business Model

The Rise and Fall of a Digital Facilitator of Prostitution

Authorities allege that Backpage.com, which was shut down by the government in 2018, generated a staggering $500 million in prostitution-related revenue since its inception in 2004. The site, which masqueraded as a legitimate classified business, was accused of actively promoting and profiting from the sex trade. Prosecutors argued that Lacey and his co-defendants were motivated by greed, as they knowingly facilitated prostitution while misleading anti-trafficking organizations and law enforcement about the true nature of Backpage's operations.

Lacey's Denial of Involvement and the Judicial Reckoning

Lacey's lawyers have maintained that their client was primarily focused on running an alternative newspaper chain and was not directly involved in Backpage's day-to-day operations. However, the judge, Diane Humetewa, dismissed this defense, stating that Lacey was aware of the allegations against Backpage and did nothing to address them. The conviction of Lacey, along with two other Backpage executives, John Brunst and Scott Spear, on various charges related to money laundering and prostitution facilitation, represents a significant legal reckoning for the website's operators.

The Impact on Victims and Law Enforcement

The Backpage case has had a profound impact on victims of sex trafficking, with Yvonne Ambrose, whose 16-year-old daughter Desiree Robinson was trafficked and killed on the site in 2016, sharing the immense pain she has endured. Additionally, a Government Accountability Office report revealed that the FBI's ability to identify victims and sex traffickers had decreased significantly after Backpage was seized, as the site had been a familiar and generally responsive resource for law enforcement.

Backpage's Moderation Efforts and the Prosecution's Counterarguments

At trial, the Backpage defendants were barred from bringing up a 2013 memo by federal prosecutors that had examined the site and found no evidence of a pattern of recklessness toward minors or admissions from key participants that the site was being used for prostitution. Prosecutors argued that the site's moderation efforts were merely a façade, aimed at concealing the true nature of the ads and the underlying criminal activity.

The Lasting Impact and Lessons Learned

The downfall of Backpage.com serves as a cautionary tale for online platforms that facilitate or enable illegal activities, even if they claim to be operating within the bounds of the law. The case highlights the need for robust regulation, proactive monitoring, and a commitment to corporate social responsibility in the digital age. As the legal landscape continues to evolve, the Backpage saga serves as a stark reminder that the pursuit of profit cannot come at the expense of public safety and the wellbeing of vulnerable individuals.