Carl Ferrer, the former CEO of the now-defunct classified ads site Backpage.com, was sentenced Tuesday to three years of probation and ordered to pay $40,000 in restitution after pleading guilty to conspiracy charges tied to money laundering and the facilitation of prostitution.

The sentencing marks a pivotal moment in the long-running federal case that dismantled one of the internet’s largest hubs for sex work and, according to prosecutors, sex trafficking.

Ferrer pleaded guilty back in 2018, shortly after federal authorities shut down Backpage and arrested its executives. His cooperation became a cornerstone of the government’s case against co-founders Michael Lacey and James Larkin, as well as other senior staff.

“He is almost entirely responsible for us having that $200 million victims’ fund,” federal prosecutor Kevin Rapp told U.S. District Judge Diane Humetewa. Prosecutors credited Ferrer’s detailed testimony and willingness to turn over company records with helping the government seize more than $200 million in assets.

In court, Ferrer acknowledged his role in enabling harm:

“What the company did was wrong, and what I did was wrong. I’m sorry. I will carry this regret and shame with me for the rest of my life.”

During the 2023 retrial of Lacey and other executives, Ferrer testified at length about how Backpage knowingly allowed prostitution ads to flourish under the guise of “escort” services. He told jurors that site administrators worked directly with pimps to craft ads designed to evade detection, and even maintained a relationship with The Erotic Review, a prostitution review board.

Ferrer also described how Backpage routed payments through shell companies abroad after major credit card processors cut ties with the platform.

Judge Humetewa, an Obama appointee, underscored the human toll in Tuesday’s hearing:

“Some of these individuals were confined in hotel rooms, often given drugs, often posed in provocative ways and posted on the site. Many of the victims, I learned through the impact statements, lost their lives.”

Prosecutors had sought five years of probation. Ferrer’s defense attorneys argued that he was manipulated by his co-founders, who convinced him that Backpage’s activities were protected under the First Amendment.

“He was surrounded by a stream of misrepresentations and lies,” said defense attorney Jonathan Baum, who described Ferrer as a man “brainwashed” into believing the company was operating legally.

Judge Humetewa ultimately granted Ferrer a lighter term, citing his extensive cooperation.

Also sentenced Tuesday was former Backpage sales director Dan Hyer, who had pleaded guilty to the same conspiracy charge. Hyer received credit for time served, was ordered to pay no restitution, and walked free.

“My actions at Backpage affected the lives of people I’ll never know,” Hyer told the court. “It’s hard to look at myself in the mirror. I will continue to try and work on the side of good rather than evil for the rest of my life.”

Humetewa replied, “I feel, Mr. Hyer, your remorse to be sincere.”

The Backpage saga has spanned nearly a decade, marked by mistrials, suicides, and multiple convictions. Lacey was sentenced last year to five years in federal prison for money laundering, though dozens of charges remain unresolved and are pending appeal. His partner, Larkin, died by suicide days before the trial began in 2023. Other executives received stiff sentences: Scott Spear and John Brunst were each given 10 years in prison.

The case became a flashpoint in debates about Section 230 protections for online platforms and contributed to Congress passing FOSTA-SESTA, the 2018 law that narrowed legal shields for websites accused of facilitating sex trafficking.

For Ferrer, the relatively light sentence reflects both his cooperation and the government’s acknowledgment that without his insider knowledge, prosecutors may not have unraveled the complex financial and operational machinery behind Backpage.

But as Judge Humetewa emphasized, no sentence could undo the damage: “Many of the victims lost their lives. The ripple effects of this case are still being felt.”