
Reported by JACQUES BILLEAUD Associated Press
Michael Lacey, a founder of the lucrative classified site Backpage.com, was convicted Thursday on a single count of money laundering and acquitted on another. But an Arizona jury deadlocked on 84 other counts against him in a case that alleged he participated in a scheme to sell sex ads, leading the judge to declare a mistrial.
U.S. District Judge Diane Humetewa in Phoenix declared the mistrial after jurors deliberated for six days. It marked the second time a mistrial has been declared in the case against the site’s co-founder.
Lacey’s first trial in 2021 ended in a mistrial when another judge concluded prosecutors had too many references to child sex trafficking in a case where no one faced such a charge. Lacey declined comment as he walked out of a Phoenix courtroom.
Lacey, 75, was tried on a total of 86 criminal counts in the case against him and four other Backpage employees.
Chief Financial Officer John Brunst was convicted of one count of conspiracy to violate the Travel Act — a federal law barring the use of interstate commerce to facilitate prostitution in violation of state laws — and more than 30 money laundering counts.
Executive Vice President Scott Spear was convicted of one count of conspiracy to violate the Travel Act, more than a dozen counts of facilitation of prostitution and about 20 money laundering counts.
Operations manager Andrew Padilla and assistant operations manager Joye Vaught were acquitted of a conspiracy charge and dozens of counts of facilitation of prostitution.
Joy Bertrand, who represented Vaught, said her client was relieved by the acquittals in a case that “ruined her life.”
Before launching Backpage, Lacey founded the Phoenix New Times weekly newspaper with James Larkin, who was charged in the case and died by suicide in late July about a week before the second trial against Backpage’s operators was scheduled to begin.
Read full report: https://www.wlky.com/article/backpage-founder-michael-lacey-convicted-of-money-laundering/45872537#