U.S. District Judge Diane Humetewa acquitted Backpage co-founder Michael Lacey of a substantial number of charges, marking a pivotal turn in a prolonged legal battle. This decision comes after a jury initially found Lacey guilty of only one out of 86 charges last fall, with the jury unable to reach a verdict on the remaining counts.
The recent court ruling dismissed 53 of the 84 counts on which federal prosecutors sought to retry Lacey. These counts involved allegations that Lacey actively facilitated prostitution through Backpage, an online classifieds site he co-founded. The decision also extended to former Backpage executives Jed Brunst and Scott Spear, who were acquitted of multiple charges previously brought against them.
Judge Humetewa’s decision was grounded in a lack of sufficient evidence to support the convictions, reflecting the complexities and challenges in the government’s case against the Backpage executives.
Despite the acquittals, significant legal challenges remain for Lacey, Spear, and Brunst. Lacey is slated for a retrial later this year on the residual charges, including conspiracy to facilitate prostitution and several counts of money laundering.
Furthermore, Lacey awaits sentencing on June 17 for a single count of international money laundering, which carries a potential sentence of up to 20 years.
The backdrop to these legal proceedings is marked by controversy and earlier judicial setbacks, including a 2021 mistrial prompted by prosecutorial overreach. The case has sparked debates over the boundaries of legal responsibility of platform founders for the actions of their users, especially in contexts implicating online freedoms and regulatory overreach.
The outcomes of these trials and subsequent appeals will likely have far-reaching implications for internet governance and legal standards for platform operators. As the legal battles continue, the tech industry and legal experts closely watch the developments, which could set precedents affecting how online platforms are regulated and held accountable in the United States.