DOJ declares victory over Backpage as judge sends founder Lacey to prison

Enlarge / Backpage founder Michael Lacey testifying at a US Senate hearing in January 2017. (credit: US Senate hearing)

Backpage founder Michael Lacey was sentenced yesterday to five years in prison and fined $3 million after being convicted on one count of money laundering. Lacey, 76, was also sentenced to three years of supervised release, the Department of Justice said in a press release.

Two other Backpage principals—Scott Spear and John “Jed” Brunst—were sentenced to 10 years in prison and three years of supervised release. “The Court also ordered that all defendants turn themselves in to the US Marshals Service by noon on Sept. 11,” the Department of Justice said.

Authorities alleged that Backpage generated over $500 million in revenue from running a forum that facilitated prostitution. While Lacey argued that he wasn’t involved in day-to-day operations, US District Judge Diane Humetewa “told Lacey during Wednesday’s sentencing he was aware of the allegations against Backpage and did nothing,” according to the Associated Press.