Black Friday Sale! 50% Off All Access

Backpage.com CEO Arrested Over Sex Trafficking Allegations Backpage, the second-largest U.S. online classified ad service after Craigslist, has faced scrutiny from the U.S. Senate as well as civil lawsuits over allegations that the site facilitates sex trafficking, especially of children.

By Reuters

Entrepreneur+ Black Friday Sale

Our biggest sale — Get unlimited access to Entrepreneur.com at an unbeatable price. Use code SAVE50 at checkout.*

Claim Offer

*Offer only available to new subscribers

This story originally appeared on Reuters

Reuters

Carl Ferrer, chief executive of advertising website Backpage.com, was arrested on Thursday on criminal charges including pimping, as authorities investigate the company which has been accused of facilitating sex trafficking of minors.

The attorneys general of Texas and California said in a statement that Ferrer had been taken into custody in Houston on a California warrant.

Backpage, the second-largest U.S. online classified ad service after Craigslist, has faced scrutiny from the U.S. Senate as well as civil lawsuits over allegations that the site facilitates sex trafficking, especially of children.

Kristin Ford, a spokeswoman for California Attorney General Kamala Harris, said Ferrer would appear in a Texas court for an extradition hearing unless he waives it.

Attorneys for Backpage.com could not immediately be reached for comment.

Harris also announced a criminal charge on Thursday against the controlling shareholders of Backpage.com, Michael Lacey and James Larkin. Ford said warrants have been issued for Lacey and Larkin but they are not in custody.

The California AG office said it had conducted a three-year investigation, including undercover operations posting escort ads.

The Senate voted 96-0 earlier this year to hold Backpage in civil contempt after it did not comply with a subpoena to hand over documents explaining how it combats sex trafficking in ads on the adult section of its website.

One civil lawsuit against Backpage was filed in 2012 in Washington State by three young teenagers who alleged they were raped multiple times after being advertised on the site. The girls, the oldest of whom was 15, sued Backpage for claims including sexual exploitation of children, alleging its posting rules were intended to instruct pimps how to post trafficking ads that evade law enforcement.

Backpage argued its rules are meant to prevent unlawful posts and invoked the federal Communications Decency Act, asserting they are not responsible for the ads because they were third-party content. Some free speech advocates filed briefs in support of its position.

The Washington state Supreme Court disagreed, ruling last year that the lawsuit could go forward.

Earlier this year, however, a similar trafficking case involving children against Backpage in Massachusetts was dismissed by a federal appeals court, which said the free speech principles embodied in the Communications Decency Act were paramount.

(Reporting by Dan Levine; Editing by Bernard Orr)

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Money & Finance

Why Donald Trump's Business-First Policies Trump Harris' Consumer-Centric Approach

President Donald Trump's pro-business agenda is packed with policy moves encouraging investment to drive economic growth. The next Congress has a unique opportunity to support entrepreneurship and innovation, improving U.S. competitiveness with the rest of the world.

Business News

Barbara Corcoran Says This Is the Interest Rate Magic Number That Will Make the Market 'Go Ballistic'

Corcoran said she praying for lower interest rates and people are "tired of waiting."

Business News

The Two Richest People in the World Are Fighting on Social Media Again

Jeff Bezos and Elon Musk had a new, contentious exchange on X.

Starting a Business

Why Are So Many Course Creators Struggling if It's 'Such an Easy Business'? Here's the Truth Behind the $800 Billion Industry

Creating an online course is so easy — at least, that's what many "gurus" would like you to believe. There's a lot of potential in the $800 billion industry, but here's why so many course creators are struggling.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business News

Here's How Much Money You Need to Make in Order to Be 'Successful,' According to Each Generation

A new survey by Empower outlines how Americans of different ages define success.