The CEO of Backpage.com, a classifieds site likened to an online brothel, pleaded guilty to money laundering charges in California on Thursday, while the company itself pleaded guilty to human trafficking in Texas. Carl Ferrer pleaded guilty to one count of conspiracy and three counts of money laundering in California, California Attorney General Xavier Becerra said Thursday. Ferrer will serve no more than five years in prison in exchange for cooperating in the prosecution of two controlling shareholders of the site, Michael Lacey and James Larkin.
Texas Attorney General Ken Paxton said the company pleaded guilty to human trafficking in Texas. "Human trafficking is modern-day slavery, and it is happening in our own backyard," Becerra said in a statement announcing the plea deal. "The shutdown of Backpage.com is a tremendous victory for the survivors and their families. And the conviction of CEO Ferrer is a game-changer in combating human trafficking in California, indeed worldwide."
Backpage was launched in 2004 as a classified advertising website with the listing of several products and services that included jobs, automotive, real estate and many more. Backpage acquires second position in the United States after Craiglist.
Backpage fell in controversy when it started ad listing for adult services, prostitution and human trafficking. Listing for adult services had been removed from the site after the company’s CEO, Carl Ferrer, and other officials were arrested.
On April 6, 2018, the website was completely shut down due to the order passed by the United States Department of Justice.
Read more here: https://www.cnet.com/news/backpage-com-ceo-plead-guilty-in-california-texas/