Backpage.com founder Michael Lacey sentenced to 5 years in prison, fined $3M for money laundering

Money Laundering News

Backpage.com founder Michael Lacey sentenced to 5 years in prison, fined $3M for money laundering
Corporate CrimeProstitutionCriminal Punishment
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Backpage.com founder Michael Lacey has been sentenced to five years in prison and fined $3 million for a money laundering conviction in a sprawling case involving allegations that he used the classified ads site to promote and profit from prostitution.

FILE - Former Backpage.com owner Michael Lacey attends a Senate committee on Jan. 10, 2017, on Capitol Hill in Washington. PHOENIX — Michael Lacey, a founder of the lucrative classified site Backpage.com, was sentenced Wednesday to five years in prison and fined $3 million for a singlecount in a sprawling case involving allegations of a yearslong scheme to promote and profit from prostitution through classified ads.

But during Wednesday’s sentencing, Humetewa told Lacey that he was aware of the allegations against Backpage and did nothing.Judge acquits 28 people accused in Panama Papers case, including law firm co-founderTwo other Backpage executives, chief financial officer John Brunst and executive vice president Scott Spear, also were convicted last year and were each sentenced on Wednesday to 10 years in prison.

Authorities say Backpage employees would identify prostitutes through Google searches, then call and offer them a free ad. The site also is accused of having a business arrangement in which it would place ads on another site that lets customers post reviews of their experiences with prostitutes.

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