October 12, 2016 | Sex & Society

Backpage.com CEO charged with pimping

Backpage CEOBackpage.com, an online classified ad site, may soon be shut down. The site's CEO, Carl Ferrer, and its shareholders, Michael Lacey and James Larkin, have been charged with nine counts of pimping, attempted pimping, pimping minors and criminal conspiracy for allowing escort services to be advertised on the site.
 
"Raking in millions of dollars from the trafficking and exploitation of vulnerable victims is outrageous, despicable and illegal," said Attorney General Kamala Harris in a press release. "Backpage and its executives purposefully and unlawfully designed Backpage to be the world’s top online brothel"
 
The actual charges seem to stem from heterosexual ads, though the site is known for including city-based same-sex escort ads as well. The site does offer non-sexual ads, for everything from jobs to selling household items; however, Harris said that the bulk of backpage.com's revenue comes from it adult-focused content.
 
Harris said: "Backpage’s internal revenue reports show that from January 2013 to March 2015, 99 percent of Backpage’s worldwide income was directly attributable to the 'adult' section. During this 29-month period, Backpage’s self-reporting demonstrates that gross monthly income from California rose to $2.5 million per month, with over $51 million in revenue derived from California in that period."
 
Ferrer is also facing charges in Texas, with authorities there alleging he and the site were involved in money laundering.
 
"The actions of the California and Texas attorneys general are flatly illegal," argued Ferrer's attorney. "They ignore the holdings of numerous federal courts that the First Amendment protects the ads on Backpage.com. The actions of the attorneys general also violate Section 230 of the Communications Decency Act pre-empting state actions such as this one and immunising web hosts of third-party created content."
 
The US Senate has also been investigating Ferrer.
 
"For the past 18 months, we have led a bipartisan investigation into the scourge of online sex trafficking," said Sen. Claire McCaskill and fellow Sen. Rob Portman in a statement. "That investigation led us directly to Backpage, an online marketplace that has been involved in hundreds of reported cases of sex trafficking, including child exploitation. ... Our investigation was the first to uncover Backpage’s practice of editing ads in manner that serves to conceal evidence of criminality."
 
It is unlikely the adult sections of backpage.com will continue for much longer. Will the site remove them, or will it close shop completely?

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