Classified advertising site Backpage.com ignored warnings to stop advertising, promoting prostitution, sometimes involving children, because profitable companies brought in half a billion dollars, according to the indictment, unsealed Monday.
The charges against the creators Backpage.com Michael Lacey and James Larkin, together with five other persons, accused them of publishing some ads that depicted children who authorities said were victims of trafficking.
The indictment says the website, claims that tried to prevent ads for prostitution, but investigators determined that was not so and that the owners have refused to take action to solve the problem.
Employees Backpage.com sought to help clients edit their ads to stay within legal limits, stimulating sex, prosecutors said. Pictures and words that were supposed to testify on prostitution was removed before these ads were run, according to the indictment.
“However, on the cover of the defendants made a financial decision to continue to display these ads,” reads the indictment, noting the website has brought $ 500 million in prostitution-related revenues since its inception in 2004.
Lacey, Larkin, and another five people who work on the website face Federal charges in what authorities have said that the system knowingly promote prostitution by running an advertisement of sexual services and use foreign banks to hide income.
Last week, Federal authorities seized Backpage.com and its affiliated websites.
The indictment said that it was implausible for Backpage.com to argue such ads offer legitimate escort services. “I’m one of those girls who loves a man who understands a desires young beautiful woman and how to accommodate a variety of fantasies,” one ad read.
In the indictment it is said Backpage.com began to wash the money a few years ago after banks raised concerns. In the indictment it is claimed on the website is routed flows through unrelated entities, transferred money in foreign banks and transfer money in cryptocurrencies.
Lacey and Larkin are accused of promoting prostitution and money laundering. Larry Kazan, the lawyer representing Lacey, and Christina arguedas, a lawyer Larkin, did not immediately return a call seeking comment.
Executive Vice President Scott spear was charged with promoting prostitution and money laundering, while chief financial officer John Brunst was charged with money laundering. Director of sales and marketing Dan immediately turn off Manager Andrew Padilla and assistant operations Manager Joye vaught was also charged with prostitution.
The indictment alleges that Padilla threatened to fire any employee who acknowledged in writing that the guards depicted in the advertisement were in fact prostitutes.
Attorney Michael Piccarreta, who represents Padilla, said that the case will be important when deciding whether a web site can be held responsible for the conduct of third parties. “This is a very important precedent if a media company can be held accountable for the fact that candidates publish on their platform,” said Piccarreta.
Michael Kimerer, an attorney Brunst, and Stephen Weiss, attorney vaught, did not return a call for comment. There were no lawyers listed in court records for immediately shut down.
Last year the website CEO Carl Ferrer, along with Lacey and Larkin, pleaded not guilty to money laundering charges in California, where state prosecutors said that the site operators have illegally channeled money through several companies and has created various websites in order to circumvent the banks that refused to handle the transaction.
Meanwhile, a California judge rejected the pandering, conspiracy and other charges against the operators Backpage.com stating that the Federal law that protects the freedom of speech gives immunity to websites that host content created by others.
In the past, the operators of the site have challenged the charges on California first amendment grounds.
Officials are struggling with how to deal with the site, without violating the guarantee of freedom of speech.
Backpage.com Dutch-owned limited liability Corporation registered in Delaware, but its principal place of business is in Dallas. Federal officials say Backpage.com keeps its Bank accounts and servers in Arizona.
Lacey and Larkin, the former owners of the village voice and the Phoenix new times. According to the indictment, Lacey and Larkin allegedly sold their interest in Backpage.com in 2015, although they retained control of the site.
Lacey and Larkin were arrested in Arizona and then the office of Sheriff Joe Arpaio in 2007 for publishing information about a secret Grand jury court, demanding information on its stories and online readers.
They won a settlement of $ 3.75 million from the County government as a result of their discredited arrests.
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Mary Hudetz in Albuquerque and don Thompson in Sacramento contributed to this report.
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Follow Jacques Billeaud in twitter.com/jacquesbilleaud. His work can be found in https://bit.ly/2GGWEPO.
Sourse: abcnews.go.com
