Backpage pleads guilty to sex trafficking, CEO faces up to 5 years for money laundering
Backpage .com, for years the primary online platform for the sex trade, has pleaded guilty as a company to charges of sex trafficking in Texas, the state’s attorney general announced today. Its CEO, Carl Ferrer, pleaded guilty to money laundering, for which he may be sentenced to up to 5 years in prison.
Ferrer was arrested back in 2016, and will be sentenced “once he’s fulfilled the terms of his plea agreement.”
The Texas AG’s office does not elaborate beyond the charges mentioned in the press release, except to say that Ferrer’s cooperation could lead to new ones. Considering the site was an international and popular platform for all kinds of sex-related commerce — allegedly including child trafficking — it seems likely there’s far more yet to come, including pleas for similar crimes in different jurisdictions.
The execution of this strike against Backpage, the culmination of an 18-month investigation (beginning around the arrest of Ferrer), is coincident but not directly related to the passage and signing of FOSTA. The bill, just this week signed into law, effectively removes the “safe harbor” enjoyed by internet companies protecting them from having liability for the actions of their users. Under FOSTA, a company like Craigslist would be responsible if, for example, a prostitute listed their services on the site.
Unsurprisingly Craigslist and other sites have removed listings or services that may put them at risk under FOSTA, prompting criticism from the more legitimate sides of the sex industry that relied on them.