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Federal Prosecutors Seek 20-Year Sentence for Backpage Co-Founder Michael Lacey

LEGAL NEWS STRAIGHT

Federal prosecutors are recommending a 20-year prison sentence for Michael Lacey, co-founder of the controversial website Backpage, following his conviction last fall for one count of international concealment of money laundering.

Federal Prosecutors Seek 20-Year Sentence for Backpage Co-Founder Michael Lacey

This severe sentence recommendation has raised eyebrows, given that Lacey’s conviction stems from a single nonviolent financial crime.

Lacey’s legal team argues that the context of his conviction is crucial. The charge involves the concealment of assets internationally, but Lacey’s lawyers contend that this situation arose only after federal law enforcement pressured U.S. banks to sever ties with him, despite no charges being pending at the time.

According to Lacey’s defense, this forced him to seek banking services abroad, a move that was fully disclosed to his legal counsel and believed to be lawful.

In their motion for a lighter sentence, Lacey’s lawyers emphasize that there was no intent to conceal assets illegally and that Lacey was transparent with his attorneys about the source of the funds, which stemmed from the sale of Backpage.

They argue that Lacey lacked knowledge that any of the money might have been tied to unlawful activities—a critical element for sustaining a money laundering conviction.

The situation is further complicated by the fact that Lacey faces the possibility of double jeopardy. He and other Backpage executives were previously charged with facilitating prostitution through the website. While some co-defendants were acquitted and others were found guilty, the jury was unable to reach a verdict on Lacey. Now, federal prosecutors want to retry him on these charges and are asking the judge to consider them during sentencing, despite the jury’s inability to convict him on those counts.

Lacey’s defense team argues that this approach would violate the Double Jeopardy Clause, as he could be punished twice for the same conduct if convicted in the future. They also highlight Lacey’s long career in journalism and his staunch defense of free speech, pointing out that Backpage allowed classified ads for sex work, which Lacey believed to be protected by the First Amendment.

Moreover, Lacey’s lawyers stress that a lengthy prison sentence would serve no public safety purpose and could significantly harm his health.

At 76 years old, Lacey suffers from several medical conditions, including high blood pressure, coronary artery disease, and sleep apnea. His legal team argues that incarceration is unnecessary, especially given that Backpage, the website at the heart of the controversy, has been offline for over six years.

Prosecutors, however, maintain that Lacey and his associates built their business on illegal activities and that a severe sentence is warranted. They are asking the court to sentence Lacey to 240 months in custody, followed by three years of supervised release.

Lacey’s lawyers counter that he has already endured significant punishment. Since his indictment in 2018, he has lived under constant federal scrutiny, faced the seizure of his assets, and lost his close friend and business partner, Jim Larkin, who tragically took his own life just days before their trial began. They argue that probation, rather than prison time, would be a more appropriate sentence.

The sentencing hearing for Michael Lacey is scheduled for August 27 and 28, where the court will decide his fate in what has become a highly contentious and closely watched case.


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