Backpage founders charged with money laundering and aiding prostitution

Michael Lacey, James Larkin, and five other people involved with Backpage.com have been charged with money laundering and facilitating prostitution.

Federal authorities have charged the two founders of classified site Backpage.com, along with five other employees, with laundering money and facilitating prostitution. According to The Washington Post, the Justice Department claims Backpage took “consistent and concerted action” to knowingly allow ads for illegal sex work. The indictment alleges that “virtually every dollar flowing into Backpage’s coffers represents the proceeds of illegal activity.

The Justice Department claims Backpage’s owners tried to cover up the fact that most of its “adult services” ads involved prostitution, and that Backpage allowed child sex traffickers to keep ads on the site as long as they deleted age-related keywords. The indictment also claims that Backpage disguised payments for illegal services by having customers funnel money to foreign bank accounts or apparently unrelated companies, or by transferring funds into cryptocurrency.

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