SACRAMENTO, Calif.—The chief executive of a website that authorities have dubbed an “online brothel” pleaded guilty Thursday to state and federal charges including conspiracy and money laundering. He also agreed to testify in prosecutions against others at Backpage.com, authorities said.

Authorities allege the site was often used to traffic underage victims, while company officials said they tried to scrub the website of such ads.

...</s>Documents unsealed today by the Justice Department (PDF) reveal Backpage.com CEO Carl Ferrer pleaded guilty to federal conspiracy charges in Arizona on April 5th, a day before the site was seized and shut down. Additionally, attorneys general in California and Texas announced today that he has entered guilty pleas to charges of human trafficking in Texas as well as conspiracy and three counts of money laundering in California. Several corporate entities tied to the site, including Backpage.com LLC, also entered guilty pleas to charges of money laundering.

As a part of the deal that will see him serve a maximum of five years in prison, the prosecutors say Ferrer has surrendered the URLs of the site and its data to law enforcement, and that he will cooperate in the prosecution against others involved with the company -- namely co-founders and controlling shareholders Michael Lacey and James Larkin, who were indicted April 9th.

The plea deal includes Ferrer's admission that a majority of the site's ads were for sex services, and that he conspired with others to launder proceeds from the ads after credit card companies and banks wouldn't do business with the site.</s>Nearly a week ago, the classified advertising website Backpage.com was seized by the Department of Justice on accounts of facilitating prostitution and money laundering from its forum.

According to the recently released reports, Backpage.com co-founder and CEO Carl Ferrer pleaded guilty to federal conspiracy charges in Arizona a day before the site was seized and shut down.

Moreover, Texas Attorney General Ken Paxton announced his office’s prosecution of Backpage.com resulted in the company pleading guilty to human trafficking in the state and its CEO pleading guilty to money laundering.

"Taking down Backpage and obtaining a criminal conviction for the company and its CEO represents a significant victory in the fight against human trafficking in Texas and around the world," Paxton said in a statement.

The chief executive of a Dallas-based website, who pleaded guilty to one count of conspiracy and three counts of money laundering, will only serve maximum of five years in prison under a California agreement.

Along with the prison time, Ferrer could also face a $250,000 fine in the federal case in Arizona, while Backpage.com could face a maximum fine of $500,000 for its money laundering conspiracy plea in the Arizona case.

Under his plea agreement, Ferrer agreed to reveal company’s data to law enforcement agencies as investigations and prosecutions continue.

His admissions came amid the cascade of developments against Backpage.com founders Michael Lacey and James Larkin. Ferrer also agreed to cooperate in the ongoing California prosecution against the founders who have not pleaded guilty.

The plea deal also included admissions from Ferrer that a large number of the site's ads were for sex services and that he schemed with others to launder proceeds from the ads after credit card companies and banks wouldn't do business with them.

Since it began in 2004, federal prosecutors said the website brought in a half-billion dollars, mostly through prominent crude advertisements for escorts and massages, among other services and some goods for sale.

A two-year Senate investigation into online sex trafficking revealed the Backpage.com deliberately aided criminal sex trafficking of women and underage girls.

“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,” Attorney General Jeff Sessions said in a statement.

“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,” he added.

The obscene activities of the website had drawn the attention of authorities in the past. The company had encountered several lawsuits but remained largely protected by Section 230 of the 1996 Communications Decency Act, a legal protection that gives a broad layer of immunity to online companies from being held liable for user-generated content.

The day Department of Justice seized the website, nation’s most prominent activist group Women’s March said in a statement on Twitter: “The shutting down of #Backpage is an absolute crisis for sex workers who rely on the site to safely get in touch with clients. Sex workers rights are women’s rights.”

After the latest confessions from the CEO surfaced, people are calling out the group on Twitter.</s>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."

The guilty pleas come just days after the US Department of Justice officially confirmed it had seized the website, calling it "the Internet's leading forum for prostitution ads." Seven people have been charged with 93 counts of various crimes, including "conspiracy to facilitate prostitution" and money laundering.

In January 2017, a US Senate subcommittee report accused Backpage of "knowingly facilitating online sex trafficking." According to the document, Backpage helped sex traffickers hide their posts from law enforcement by automatically removing words and phrases like "lolita," "teenage," "little girl" and "rape," then published those classified ads anyway.

The US Senate and House of Representatives both recently passed the Stop Enabling Sex Traffickers Act (SESTA) in order to target sites like Backpage. President Donald Trump signed the act into law on Wednesday.

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iHate: CNET looks at how intolerance is taking over the internet.</s>The founder and chief executive officer of Backpage.com, a website linked to human trafficking, has pleaded guilty to charges including conspiring to facilitate prostitution and money laundering.Carl Ferrer, 57, of Frisco, Texas, will face a maximum of five years in prison. Part of his plea agreement with federal and state authorities includes forfeiting all corporate assets related to the website and making sure it's permanently shuttered.Federal authorities seized control of the website last week so "it can no longer be used by criminals to promote and facilitate human trafficking," Attorney General Jeff Sessions said in a statement released by the Department of Justice on Thursday."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," Sessions said. "But this illegality stops right now."Ferrer "has pleaded guilty to conspiracy to facilitate prostitution using a facility in interstate or foreign commerce and to engage in money laundering," according to the DOJ statement.Ferrer's plea deal also covers Backpage-related charges in California and Texas, according to court documents.California Attorney General Xavier Bacerra said Ferrer pleaded guilty to one count of conspiracy and three counts of money laundering. As part of the deal, Ferrer will cooperate in aiding the prosecution of two controlling shareholders of the website. Those cases remain in Sacramento Superior Court.Texas Attorney General Ken Paxton said Ferrer pleaded guilty to money laundering and that his company is pleading guilty to human trafficking."According to the factual basis of his plea agreement, Ferrer admitted that he had long been aware that the great majority of Backpage's 'escort' and 'adult' advertisements are, in fact, advertisements for prostitution services, which are not protected by the First Amendment and which are illegal in 49 states and in much of Nevada," the DOJ statement said. "Ferrer further admitted that he conspired with other Backpage principals to find ways to knowingly facilitate the state-law prostitution crimes being committed by Backpage's customers."Since 2004, according to the DOJ, Backpage "has earned hundreds of millions of dollars in revenue from publishing 'escort' and 'adult' ads."</s>The Justice Department announced Thursday that Backpage’s co-founder and CEO, Carl Ferrer, has pleaded guilty to conspiracy to facilitate prostitution using a facility in interstate or foreign commerce and to engage in money laundering.

Additionally, several Backpage-related corporate entities, including Backpage.com LLC, have entered guilty pleas to conspiracy to engage in money laundering.

Last week, the classifieds website was seized and shut down by the FBI.

The FBI confirmed that agents also raided the Sedona home of Michael Lacey, the founder of Backpage.com.

Backpage.com has been under investigation for years for claims that the site facilitates sex trafficking on their adult ads page.

The site allowed users to post ads for 'escorts' and investigators say many of the ads are actually for underage girls.

The FBI seized the website because it was allegedly being used to facilitate crime. The FBI has done this before with other sex trafficking websites and online pharmacies.

There are 17 victims named in the documents who are both adults and children who say they were forced into sex trafficking.

[READ MORE: Phoenix PD bust man with prostitution ad on Backpage.com]

“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 Jeff 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."

“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."

According to his plea agreement, Ferrer admitted that he had long been aware that the great majority of Backpage’s “escort” and “adult” advertisements are, in fact, advertisements for prostitution services, which are not protected by the First Amendment and which are illegal in 49 states and in much of Nevada.

Ferrer further admitted that he conspired with other Backpage principals to find ways to knowingly facilitate the state-law prostitution crimes being committed by Backpage’s customers. For example, he worked with his co-conspirators to create “moderation” processes through which Backpage would remove terms and pictures that were particularly indicative of prostitution and then publish a revised version of the ad.

Ferrer admitted that these editing practices were only one component of an overall, company-wide culture and policy of concealing and refusing to officially acknowledge the true nature of the services being offered in Backpage’s “escort” and “adult” ads.

In his plea agreement, Ferrer also admitted that he conspired with other Backpage principals to engage in various money laundering offenses.

According to the agreement, since 2004, Backpage has earned hundreds of millions of dollars in revenue from publishing “escort” and “adult” ads. Over time, many banks, credit card companies, and other financial institutions refused to do business with Backpage due to the illegal nature of its business.

In response, Ferrer admitted that he worked with his co-conspirators to find ways to fool credit card companies into believing that Backpage-associated charges were being incurred on different websites, to route Backpage-related payments and proceeds through bank accounts held in the name of seemingly unconnected entities, and to use cryptocurrency-processing companies for similar purposes.

Ferrer’s plea agreement also requires him to take all steps within his power to immediately shut down the Backpage website, including providing technical assistance to the United States to effectuate the shutdown, and to take all steps within his power to forfeit to the United States all corporate assets and other property owned or controlled by various Backpage-related entities.

The plea agreement provides that, if Ferrer fails to comply with either of these requirements, the plea agreement shall be null and void and the United States may bring additional charges against Ferrer. Ferrer’s plea agreement, and the corporate plea agreements, also consent to the forfeiture of certain assets and items of property, including various domain names associated with the Backpage website.

[READ MORE: Phoenix officials raise awareness about human trafficking with new PSA]

The seven defendants charged in the 93-count indictment were all arrested on Friday, April 6.

They 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.

On April 6, Vaught had her initial court appearance before U.S. Magistrate Judge Eileen Willett of the District of Arizona and was released from custody pending trial. Lacey, who also had his initial court appearance on April 6 before Judge Willett, subsequently had a detention hearing on April 11 before U.S. Magistrate Judge Bridget S. Bade of the District of Arizona and was ordered to temporarily remain in custody until his continued hearing on Friday, April 13.

On April 9, Larkin, Spear, and Brunst had their initial court appearances before Judge Bade. Larkin has since been ordered to temporarily remain in custody until a continued detention hearing on Monday, April 16, and Spear and Brunst were released from custody pending trial.

Also on April 9, Hyer had his initial court appearance before U.S. Magistrate Judge David L. Horan in the Northern District of Texas and was released from custody pending trial, and Padilla had his initial court appearance before U.S. Magistrate Judge Christine A. Nowak in the Eastern District of Texas and was released from custody pending trial.

[RELATED: John and Cindy McCain applaud the arrest of Backpage.com CEO]

Click/tap here to download the free azfamily mobile app.</s>Carl Ferrer, the co-founder of Backpage, the notorious and now-shuttered site that once hosted a vast quantity of prostitution-related ads, has pleaded guilty to conspiracy and money laundering charges.

The CEO, in a federal plea agreement unsealed in federal court in Arizona on Thursday, admitted that during the 14 years of the site’s existence, "the great majority" of Backpage's allegedly hundreds of millions of dollars in revenue came from placing illegal ads for prostitution.

The deal was made public just three days after Backpage was seized, and seven men allegedly involved in creating and operating Backpage were indicted on prostitution and money laundering charges. Ferrer’s name did not appear in that indictment.

Trump signs bill to shut down websites that facilitate prostitution Ferrer agreed, in combined plea deals with both Texas and California authorities, where he faced outstanding charges, that he will shut down Backpage "throughout the world," will aid authorities in ongoing prosecutions of his co-conspirators, and will make all Backpage data available to authorities.

Backpage the company also pleaded guilty to human trafficking in Texas.

In exchange for his cooperation, Ferrer will serve a maximum of five years in each case, to be served concurrently.

"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," Attorney General Jeff Sessions said in a statement. "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."

The two plea deals, which cover both Ferrer personally and Backpage.com LLC, were unsealed just a day after President Donald Trump enacted a law that targets Backpage and its ilk. The White House wrote Wednesday that the new law "makes it a Federal crime to own, manage, or operate a website with the intent to promote or facilitate prostitution."</s>CEO of Backpage.com that prosecutors say is an online brothel pleads guilty to California money-laundering charges. .</s>Backpage .com, for years the primary online platform for the sex trade, has pleaded guilty as a company to charges of sex trafficking in Texas, the state’s attorney general announced today. Its CEO, Carl Ferrer, pleaded guilty to money laundering, for which he may be sentenced to up to 5 years in prison.

The site was seized last week and a 93-count indictment issued days later.

Ferrer was arrested back in 2016, and will be sentenced “once he’s fulfilled the terms of his plea agreement.”

The Texas AG’s office does not elaborate beyond the charges mentioned in the press release, except to say that Ferrer’s cooperation could lead to new ones. Considering the site was an international and popular platform for all kinds of sex-related commerce — allegedly including child trafficking — it seems likely there’s far more yet to come, including pleas for similar crimes in different jurisdictions.

The execution of this strike against Backpage, the culmination of an 18-month investigation (beginning around the arrest of Ferrer), is coincident but not directly related to the passage and signing of FOSTA. The bill, just this week signed into law, effectively removes the “safe harbor” enjoyed by internet companies protecting them from having liability for the actions of their users. Under FOSTA, a company like Craigslist would be responsible if, for example, a prostitute listed their services on the site.

Unsurprisingly Craigslist and other sites have removed listings or services that may put them at risk under FOSTA, prompting criticism from the more legitimate sides of the sex industry that relied on them.</s>The online advertising site Backpage.com and its chief executive have pleaded guilty to federal conspiracy charges in Arizona.

The guilty pleas by the company and 57-year-old CEO Carl Ferrer were made on April 5, but were unsealed late Thursday afternoon.

The acknowledgements of wrongdoing came shortly after Ferrer pleaded guilty on Thursday to a state money laundering charges in California and the company pleaded guilty to human trafficking in Texas.

He pleaded guilty to one count of conspiracy and three counts of money laundering. He also agreed to cooperate in the ongoing California prosecution of Backpage.com founders Michael Lacey, and James Larkin. They have pleaded not guilty.

Ferrer says in his federal plea deal that he was aware that a great majority of the site's ads were for sex services.

He also says he conspired with others at Backpage.com to launder the proceeds from such ads after credit card companies and banks refused to do business with the site.

State agents raided the Dallas headquarters of Backpage and arrested Ferrer on a California warrant after he arrived at Houston's Bush Intercontinental Airport on a flight from Amsterdam on Oct. 6, 2016.

He will serve no more than five years in a state prison under the plea agreement or he could pay a fine of $250,000.

Co-founder James Larkin underwent a hearing Thursday over whether to release him from jail. Magistrate Judge Bridget Bade says attorneys have agreed on the terms of release, but other details must be ironed out. The hearing will resume Monday.

Larkin, co-founder Michael Lacey and five Backpage.com employees were arrested in what authorities say was a scheme to publish ads for sexual services.

Four employees and the site founders pleaded not guilty to the charges.

The founders also were among those indicted this month by a federal grand jury in Arizona. Ferrer was noticeably absent from the federal indictment, which referenced a 'CF' who was heavily involved with the site.

Ferrer also agreed to make the company's data available to law enforcement.

In a press statement obtained by USA Today, U.S. Attorney General Jeff Sessions praised the seizure of Backpage.

'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,' he said. 'But this illegality stops right now.'
Backpage CEO Carl Ferrer pleads guilty to conspiracy and money laundering and agrees to assist in the prosecution of other Backpage employees, including co-founders Michael Lacey and James Larkin, who were charged with several counts of human trafficking on April 6 after the site was seized by the FBI.