Houston Chronicle

Guilty pleas by Backpage.com and its CEO

Company’s website has been called an ‘online brothel’

- By Don Thompson

SACRAMENTO, Calif. — The chief executive of a website that authoritie­s have dubbed an “online brothel” pleaded guilty to California money-laundering charges Thursday, while the company itself pleaded guilty to human traffickin­g in Texas.

Carl Ferrer will cooperate in prosecutin­g Backpage.com's creators and will serve no more than five years in state prison under a California plea agreement. He pleaded guilty to one count of conspiracy and three counts of money laundering in California.

Texas Attorney General Ken Paxton said the company pleaded guilty to human traffickin­g in Texas.

Ferrer also agreed to make the company's data available to law enforcemen­t as investigat­ions and prosecutio­ns continue. The guilty pleas are the latest in a cascade of developmen­ts in the last week against the company founded by the former owners of the Village Voice in New York City, Michael Lacey, 69, and James Larkin, 68.

The company founders were among company officials indicted by a federal grand jury in Arizona, while Ferrer, 57, was noticeably absent from the indictment. The U.S. Justice Department also seized and shut down the website used to prominentl­y advertise escorts and massages, among other services and some goods for sale. Authoritie­s allege the site was often used to traffic underage victims, while company officials said they tried to scrub the website of such ads.

Attorneys for the company and the three men did not respond to multiple telephone and email messages.

“Human traffickin­g is modern-day slavery, and it is happening in our own backyard,” California Attorney General Xavier Becerra said in a statement announcing the plea deal. “The shutdown of Backpage.com is a tremendous victory for the survivors and their families. And the conviction of CEO Ferrer is a game-changer in combatting human traffickin­g in California, indeed worldwide.”

President Donald Trump this week signed a law making it easier to prosecute website operators.

Paxton called Thursday's pleas “a significan­t victory in the fight against human traffickin­g in Texas and around the world.”

Texas state agents raided the Dallas headquarte­rs of Backpage and arrested Ferrer on a California warrant after he arrived at Houston's Bush Interconti­nental Airport on a flight from Amsterdam on Oct. 6, 2016. The Dutch-owned company is incorporat­ed in Delaware, but its principal place of business is in Dallas.

 ?? Melissa Phillip / Houston Chronicle file ?? Carl Ferrer, Backpage.com CEO, is escorted from a 2016 court appearance in Harris County Criminal Court. He pleaded guilty Thursday to charges in California.
Melissa Phillip / Houston Chronicle file Carl Ferrer, Backpage.com CEO, is escorted from a 2016 court appearance in Harris County Criminal Court. He pleaded guilty Thursday to charges in California.

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