Owners of notorious prostitution website convicted

(WKBN) – Three owners of Backstage.com, a prostitution website charged by WKBN 27 First News in several criminal sex trafficking operations, have been convicted in federal court of money laundering.

Michael Lacey, 76, of Paradise Valley, Arizona, was sentenced to five years in prison and three years of supervised release; Scott Spear, 73, of Phoenix, was sentenced to 10 years in prison and three years of supervised release; and John “Jed” Brunst, 72, of Phoenix, was sentenced to 10 years in prison and three years of supervised release. The court also ordered that all defendants report to the U.S. Marshal’s Service no later than noon on Sept. 11.

According to court documents, Lacey, Spear and Brunst owned Backpage from September 2010 until its seizure by the United States in April 2018. During that time, Backpage was the leading forum for online prostitution.

Prosecutors allege the site manipulated links, used vague language and directed moderators to remove terms known to suggest sex for money. They also accused the company of using several offshore shell companies to hide the company’s $500 million in profits.

“The defendants and their conspirators obtained more than $500 million by operating an online forum that facilitated the sexual exploitation of countless victims,” ​​said Principal Deputy Assistant Attorney General Nicole M. Argentieri, chief of the Justice Department’s Criminal Division. “The defendants thought they could hide their illegal proceeds by laundering the money through shell companies located overseas, but they were mistaken. Their sentences should serve as a stark reminder that the Criminal Division and its law enforcement partners are committed to protecting victims and following the money to expose those who exploit people for financial gain.”

Trouble is brewing for Backstage with CEO and co-founder Carl Ferrer pleading guilty in April 2018 to conspiracy to facilitate prostitution using a facility in interstate or foreign commerce and money laundering. Backstage’s marketing director Day Hyer pleaded guilty to conspiracy to facilitate prostitution using a facility in interstate or foreign commerce. Another accomplice, James Larkin, 72, died before the trial began.

The Department of Justice charged Backstage.com, owners and facilitators of human trafficking, including child prostitution. The site was seized in 2018. Most of the website’s leaders operated out of Arizona and Texas.