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proverbialwisdom

(4,959 posts) Fri Oct 7, 2016, 01:18 PM Oct 2016

AG Kamala D. Harris Announces Criminal Charges Against Senior Corporate Officers of Backpage.com...

Source: State of California Office of the Attorney General

SACRAMENTO -- Attorney General Kamala D. Harris today announced the arrest of Carl Ferrer, the Chief Executive Officer of online advertising website Backpage.com, on felony charges of pimping a minor, pimping, and conspiracy to commit pimping. Michael Lacey and James Larkin, controlling shareholders of Backpage, have also been criminally charged with conspiracy to commit pimping, a felony. Backpage hosts ads for “escort services”, essentially operating as an online brothel and generating millions of dollars off the illegal sex trade.

“Raking in millions of dollars from the trafficking and exploitation of vulnerable victims is outrageous, despicable and illegal,” said Attorney General Harris. “Backpage and its executives purposefully and unlawfully designed Backpage to be the world’s top online brothel. Thank you to the California Department of Justice Special Agents, investigators, attorneys, and our partners in law enforcement who have worked tirelessly to bring the operators of this online brothel to justice and protect thousands of victims of trafficking.”

While Backpage hosts ads for sales of a range of items and services, the arrest warrant alleges that the vast majority of Backpage’s revenue is generated through prostitution-related ads in its “adult services” section. Backpage collects fees from users who post “escort” ads, offering sex for money using coded language and nearly nude photos. The California Department of Justice’s investigation found that many of the ads for prostitution services involved victims of sex trafficking, including children under the age of 18.

Since 2010, Backpage has been expanding operations, creating sites in hundreds of cities throughout the world, including over 30 cities in California. Backpage’s internal revenue reports show that from January 2013 to March 2015, 99% 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.

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Attorney General Harris has made fighting human trafficking a priority for the California Department of Justice, and has advocated for increased collaboration among federal, state and local law enforcement agencies during the investigation and prosecution of human trafficking crimes.

Read more: https://oag.ca.gov/news/press-releases/attorney-general-kamala-d-harris-announces-criminal-charges-against-senior

Also see: http://www.latimes.com/local/lanow/la-me-ln-backpage-ceo-arrested-charged-20161006-snap-story.html

12 replies

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AG Kamala D. Harris Announces Criminal Charges Against Senior Corporate Officers of Backpage.com... (Original Post) proverbialwisdom Oct 2016 OP

So, they go after backpage but let the CEO for Wells Fargo get away with cstanleytech Oct 2016 #1

"3-year probe sparked by reports of >2,900 instances of suspected child trafficking in CA" is why. proverbialwisdom Oct 2016 #3

I'm not talking about civil charges I am talking criminal ones by cstanleytech Oct 2016 #4

I do not disagree. (nt) proverbialwisdom Oct 2016 #6

OFF TOPIC (cont'): Sen. Warren: Stumpf should be criminally investigated proverbialwisdom Oct 2016 #7

I am aware of what she said what I am not aware of are any criminal charges actually being cstanleytech Oct 2016 #8

But back to the O.P. FrodosPet Oct 2016 #10

Oh the trafficers are worse of course but I still wonder cstanleytech Oct 2016 #12

Both are scum FrodosPet Oct 2016 #5

Michael Lacey Jim Larkin used to own the Village Voice. tinrobot Oct 2016 #2

Does that mean they are innocent and being set up? FrodosPet Oct 2016 #9

Not at all. It's their business. tinrobot Oct 2016 #11

cstanleytech

(26,318 posts)

1. So, they go after backpage but let the CEO for Wells Fargo get away with

Reply to proverbialwisdom (Original post)

Fri Oct 7, 2016, 02:12 PM

Oct 2016

defrauding alot of his customers?

proverbialwisdom

(4,959 posts)

3. "3-year probe sparked by reports of >2,900 instances of suspected child trafficking in CA" is why.

Reply to cstanleytech (Reply #1)

Fri Oct 7, 2016, 02:38 PM

Oct 2016

http://www.bloomberg.com/news/articles/2016-10-07/will-the-first-amendment-protect-backpage-com-from-pimping-charges

Will the First Amendment Protect Backpage.com From Pimping Charges?
By Dune Lawrence, Bloomberg Businessweek
October 7, 2016 — 9:47 AM PDT

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The company has been shielded by the strong protections for free speech online, including the immunity from liability granted online platforms for so-called third-party content—in this case, ads posted for prostitutes. But state attorneys general, victims of human trafficking, and Congress have continued to dig for evidence that Backpage knowingly promotes and facilitates sex trafficking of minors.

The California charges stem from a three-year probe sparked by reports of more than 2,900 instances of suspected child trafficking in the state since 2012, according to prosecutors. Backpage earned more than $51 million in revenue there, almost all of it from adult ads, including ones that advertised children under 16 years old, between January 2013 and March 2015, Harris alleged. Ferrer also worked to expand Backpage’s market share by creating other prostitution-related sites, Evilempire.com and Bigcity.com, that drove traffic to Backpage escort ads, according to an affidavit filed with the arrest warrant.

Michael Lacey and James Larkin, described as Backpage’s controlling shareholders, were also charged with conspiracy to commit pimping. Although Ferrer ran the day-to-day operations, he was in regular correspondence with Lacey and Larkin, who also received significant payments from Backpage, according to the government. Each received a “bonus” of $10 million in September 2014, according to the affidavit.

Backpage was founded in 2004 by Larkin and Lacy, and Ferrer managed the site. In 2014, Ferrer bought Backpage through two holding companies and created a new parent company, Netherlands-based UGC Tech Group C.V.

Liz McDougall, Backpage’s general counsel, didn’t immediately respond to a call and e-mail seeking comment.

As for legal inaction against WF, this explanation appeared on Bloomberg TV (via Sling) recently, and hey it's not unique.

http://www.insurancejournal.com/news/national/2016/09/22/427206.htm

Mandatory Arbitration Clause Could Thwart Wells Fargo Customers’ Lawsuits
By Suzanne Barlyn | September 22, 2016

https://www.morningstar.com/news/dow-jones/washington-wire/TDJNDN_2016100310697/sen-brown-plans-bill-to-ban-forced-arbitration-in-wells-fargo-sales-scandal.html

Sen. Brown Plans Bill to Ban Forced Arbitration in Wells Fargo Sales Scandal
10/03/16 05:32 PM EDT
By Yuka Hayashi

https://newrepublic.com/article/137287/nursing-homes-common-wells-fargo

What Nursing Homes Have in Common With Wells Fargo
Both use arbitration to fend off lawsuits—and keep their criminal conduct secret.
By David Dayen
September 28, 2016

cstanleytech

(26,318 posts)

4. I'm not talking about civil charges I am talking criminal ones by

Reply to proverbialwisdom (Reply #3)

Fri Oct 7, 2016, 03:08 PM

Oct 2016

the government and there is no way in hell that he could not have known, not with how widespread it was being done.

proverbialwisdom

(4,959 posts)

6. I do not disagree. (nt)

Reply to cstanleytech (Reply #4)

Fri Oct 7, 2016, 04:55 PM

Oct 2016

proverbialwisdom

(4,959 posts)

7. OFF TOPIC (cont'): Sen. Warren: Stumpf should be criminally investigated

Reply to cstanleytech (Reply #4)

Fri Oct 7, 2016, 05:36 PM

Oct 2016

http://www.cnbc.com/2016/09/20/elizabeth-warren-tells-wells-fargo-ceo-john-stumpf-you-should-be-criminally-investigated.html

Sen. Warren: Stumpf should be criminally investigated
Tuesday, 20 Sep 2016 | 11:33 AM ET | 01:55

Sen. Elizabeth Warren on Tuesday called for a criminal investigation into Wells Fargo executives over the cross-selling scandal that has engulfed the bank and told CEO John Stumpf he should resign.

As her colleagues grilled Stumpf, Warren lit into the head of the nation's second-largest bank, saying reform won't come to the industry until executives are sent to jail.

"This is about accountability," she said. "You should resign, you should give back the money you took while this scam was going on and you should be criminally investigated by both the Department of Justice and the Securities and Exchange Commission."

"The only way that Wall Street will change is if executives face jail time when they preside over massive frauds," she added. "Until then it will be business as usual, and at giant banks like Wells Fargo, that seems to mean cheating as many customers, investors and employees as they possibly can."

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Warren, who earned her reputation on Capitol Hill as a crusader for Americans against the financial services industry, is one of the scant few on the Senate banking committee who has not been cut a check by Wells Fargo's political action committee.

—Jon Marino contributed to this report.

cstanleytech

(26,318 posts)

8. I am aware of what she said what I am not aware of are any criminal charges actually being

Reply to proverbialwisdom (Reply #7)

Fri Oct 7, 2016, 07:23 PM

Oct 2016

filed against the CEO as he has been on the job for years so he can't hide behind any claim of being new on the job and thus he couldn't have known.

FrodosPet

(5,169 posts)

10. But back to the O.P.

Reply to cstanleytech (Reply #8)

Fri Oct 7, 2016, 10:37 PM

Oct 2016

The mess at Wells Fargo is even worse than human traffickers?

cstanleytech

(26,318 posts)

12. Oh the trafficers are worse of course but I still wonder

Reply to FrodosPet (Reply #10)

Fri Oct 7, 2016, 11:27 PM

Oct 2016

if they would ignore it still if one of the big banks like Wells Fargo were involved in it as well.

FrodosPet

(5,169 posts)

5. Both are scum

Reply to cstanleytech (Reply #1)

Fri Oct 7, 2016, 03:36 PM

Oct 2016

As bad as the Wells Fargo case is, human trafficking and sexual predation is the ultimate evil.

tinrobot

(10,914 posts)

2. Michael Lacey Jim Larkin used to own the Village Voice.

Reply to proverbialwisdom (Original post)

Fri Oct 7, 2016, 02:19 PM

Oct 2016

They made their money in weekly newspapers, including the Village Voice and Phoenix's New Times. I know Michael has done some very good journalism over the years.

Interesting tidbit - AZ Sheriff Joe Arpaio had both of them arrested in the early 2000's because he didn't like some investigative journalism on him that ran in their newspaper. They sued and won, then donated the proceeds to the ACLU and the Electronic Frontier Foundation.

http://www.phoenixnewtimes.com/news/joe-arpaio-loses-new-times-co-founders-win-375-million-settlement-for-2007-false-arrests-6651491

FrodosPet

(5,169 posts)

9. Does that mean they are innocent and being set up?

Reply to tinrobot (Reply #2)

Fri Oct 7, 2016, 10:36 PM

Oct 2016

Or are you just contrasting prior good works and harassment by Arpaio with the current charges?

It's sorta vague what you are saying.

tinrobot

(10,914 posts)

11. Not at all. It's their business.

Reply to FrodosPet (Reply #9)

Fri Oct 7, 2016, 10:42 PM

Oct 2016

They sold off the newspapers a few years ago and kept the Back Pages business. They certainly have not been set up, since sex ads are a big portion of the profits. They'll have to defend that decision.

It's just interesting to see two progressive journalists in this sort of situation.

A little ironic, I guess.

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