Backpage co-founder sentenced to five years in prison

Michael Lacey, a founder of the defunct classified site Backpage.com, received a five-year prison sentence on Wednesday and was fined $3 million. Lacey was found guilty of money laundering last year in a sweeping case that alleged Backpage executives promoted and profited from prostitution.

Lacey was convicted on a single count of international concealment money laundering in November 2023 but was acquitted of 50 other charges related to prostitution facilitation and money laundering due to insufficient evidence. He still faces about 30 related charges, according to the Associated Press. Two other Backpage executives — former chief financial officer John Brunst and executive vice president Scott Spear — received 10-year prison sentences on Wednesday after being convicted of money laundering and prostitution facilitation last year.

“The defendants and their conspirators obtained more than $500 million from operating an online forum that facilitated the sexual exploitation of countless victims,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri in a Department of Justice press release. “The defendants thought they could hide their illicit proceeds by laundering the funds through shell companies in foreign countries. But they were wrong.”

The case is one of many that Backpage has faced regarding sexual exploitation over the last decade, having shuttered its “Adult Services” ads section in 2017 in response to pressure from lawmakers and critics. All three men have been ordered to turn themselves in by September 11th to begin serving their sentences. According to The New York Times, both Lacey and Brunst are planning to appeal the sentencing.