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1

Justice Department Leads Effort to Seize Backpage.Com, the Internet’s
Leading Forum for Prostitution Ads, and Obtains 93-Count Federal Indictment
Note: To view the indictment click here.

The Justice Department today announced the seizure of Backpage.com, the
Internet’s leading forum for prostitution ads, including ads depicting the
prostitution of children. Additionally, seven individuals have been charged
in a 93-count federal indictment with the crimes of conspiracy to facilitate
prostitution using a facility in interstate or foreign commerce,
facilitating prostitution using a facility in interstate or foreign
commerce, conspiracy to commit money laundering, concealment money
laundering, international promotional money laundering, and transactional
money laundering.|

The seven defendants charged in the indictment are Michael Lacey, 69, of
Paradise Valley, Arizona; James Larkin, 68, of Paradise Valley, Arizona;
Scott Spear, 67, of Scottsdale, Arizona; John E. “Jed” Brunst, 66, of
Phoenix, Arizona; Daniel Hyer, 49, of Dallas, Texas; Andrew Padilla, 45, of
Plano, Texas and Jaala Joye Vaught, 37, of Addison, Texas.

Attorney General Jeff Sessions, Deputy Attorney General Rod Rosenstein,
Acting Assistant Attorney General John P. Cronan of the Justice Department’s
Criminal Division, First Assistant U.S. Attorney Elizabeth A. Strange for
the District of Arizona, U.S. Attorney Nicola T. Hanna of the Central
District of California, FBI Director Christopher A. Wray, U.S. Postal
Inspection Service Chief Postal Inspector Guy Cottrell and Chief Don Fort of
Internal Revenue Service Criminal Investigation (IRS-CI) made the
announcement.

“For far too long, Backpage.com existed as the dominant marketplace for
illicit commercial sex, a place where sex traffickers frequently advertised
children and adults alike,” said Attorney General Sessions. “But this
illegality stops right now. Last Friday, the Department of Justice seized
Backpage, and it can no longer be used by criminals to promote and
facilitate human trafficking. I want to thank everyone who made this
important seizure possible: all of our dedicated and committed professionals
in the Child Exploitation and Obscenity Section and our U.S. Attorney’s
Office in the District of Arizona, the FBI, our partners with the IRS
Criminal Investigation, our Postal Inspectors, and the Texas and California
Attorney Generals’ offices. With their help, we have put an end to the
violence, abuse, and heartache that has been perpetrated using this site,
and we have taken a major step toward keeping women and children across
America safe.”

“Backpage has earned hundreds of millions of dollars from facilitating
prostitution and sex trafficking, placing profits over the well-being and
safety of the many thousands of women and children who were victimized by
its practices,” said First Assistant U.S. Attorney Elizabeth A. Strange.
“It is appropriate that Backpage is now facing criminal charges in Arizona,
where the company was founded, and I applaud the tremendous efforts of the
agents who contributed to last Friday’s enforcement action and who assisted
in obtaining the indictment in this case. Some of the internal emails and
company documents described in the indictment are shocking in their
callousness.”

“This website will no longer serve as a platform for human traffickers to
thrive, and those who were complicit in its use to exploit human beings for
monetary gain will be held accountable for their heinous actions,” said FBI
Director Wray. “Whether on the street or on the Internet, sex trafficking
will not be tolerated. Together with our law enforcement partners, the FBI
will continue to vigorously combat this activity and protect those who are
victimized.”

“The events of last Friday and today are a big win, not only for the agents
who investigated these crimes, but more importantly for the victims,
including children, who were harmed as a consequence of the alleged actions
of Backpage.com,” said Chief Postal Inspector Cottrell. “By laundering the
illegal gains of an enterprise, Backpage perpetuated the exploitation of
victims and continued to finance their business. The U.S. Postal Inspection
Service is committed to protecting our customers by stopping the money
laundering to ensure the cycle of victimization ends.”

“An indictment of this magnitude is particularly troubling when you look at
the various layers of corruption and exploitation that are alleged to have
occurred,” said IRS-CI Chief Fort. “The masterminds behind Backpage are not
only alleged to have committed egregious amounts of financial crimes such as
money laundering, they did so at the expense of innocent women and children.
While these types of investigations can be made more challenging with the
use of virtual currency, offshore banking, and the anonymity of the
Internet, it should serve as an example to all criminals that there is not a
place they can hide where we will not find them.”

The charges and allegations contained in an indictment are merely
accusations. The defendant is presumed innocent until proven guilty beyond
a reasonable doubt in a court of law.

The effort to seize Backpage was led by the Justice Department’s Child
Exploitation and Obscenity Section and the U.S. Attorney’s Office for the
District of Arizona, with significant support from the U.S. Attorney’s
Office for the Central District of California, the office of the California
Attorney General, and the office of the Texas Attorney General. The law
enforcement agencies conducting the investigation and seizure include the
FBI Phoenix Field Office, the U.S. Postal Inspection Service and IRS-CI.
The criminal case is being prosecuted by Assistant U.S. Attorneys Kevin
Rapp, Dominic Lanza, and Margaret Perlmeter of the District of Arizona and
Senior Trial Attorney Reginald E. Jones of the Criminal Division’s Child
Exploitation and Obscenity Section. Assistant U.S. Attorney John Kucera of
the Central District of California is handling the asset forfeiture aspects
of the case.

Go give Michael Lacey, 69, of Paradise Valley, Arizona Covid-19
Go give James Larkin, 68, of Paradise Valley, Arizona Covid-19
Go give Scott Spear, 67, of Scottsdale, Arizona Covid-19
Go give John E. “Jed” Brunst, 66, of Phoenix, Arizona Covid-19
Go give Daniel Hyer, 49, of Dallas, Texas Covid-19
Go give Andrew Padilla, 45, of Plano, Texas Covid-19
Go give Jaala Joye Vaught, 37, of Addison, Texas Covid-19