The retrial of Backpage.com co-founder Michael Lacey and four former employees is underway in Phoenix, following the death of co-defendant James “Jim” Larkin in July. Jury selection for the second trial began on Tuesday, August 29, 2023, after the first trial ended in a mistrial in September 2021.

Backpage Retrial Proceeds After Co-Founder's Death

The federal trial against former Backpage.com executives and employees has entered its second iteration, with jury selection commencing on Tuesday, August 29, 2023. This development follows the death of co-defendant James “Jim” Larkin on July 31. U.S. District Judge Diane Humetewa had previously set the new date for jury selection, implementing a three-week delay after Larkin's death. The judge noted at the time that Larkin’s death could affect the handling of evidence and potentially limit the jury pool, as many prospective jurors might have heard about the suicide.

Prosecutors subsequently dropped the charges against Larkin. The remaining defendants are Michael “Mike” Lacey, Larkin’s long-time partner and Backpage co-founder, along with executives Scott Spear, John Brunst, and Joye Vaught. These five defendants collectively face 100 felony counts. Lacey and two others have pleaded not guilty to money laundering charges, while all five have pleaded not guilty to charges of facilitating prostitution.

Backpage.com was shut down and seized by federal authorities in 2018, days before President Trump signed FOSTA into law. The government accused Larkin, Lacey, and other company executives of various crimes related to their ownership of the classifieds website. The case has been cited by political figures, including Vice President Kamala Harris, as an example supporting the need for the FOSTA Section 230 exception. Federal prosecutors have accused the company of "participation in a conspiracy to facilitate and promote prostitution," money laundering, and human trafficking, charges which the defense has disputed.

Previous Mistrial and Allegations

The first trial, which concluded in September 2021, was declared a mistrial by Judge Susan Brnovich. She ruled that the government and its witnesses "crossed the line several times" by inaccurately implying the case involved CSAM and child exploitation, despite her admonishments. During the first trial, a witness controversially claimed that "most sex trafficking victims were sold through Backpage while it was active."

Alex Yelderman, special counsel to the Human Trafficking Legal Center, stated that he had "no idea about percentages, and anybody who tells you they do is bullshitting." He added that while there is "a huge amount of sentiment in the anti-human trafficking world that Backpage is a culprit here," they are not. Yelderman further commented that if prosecutors wanted to discuss trafficking, they could charge the defendants with trafficking, but "they just don’t have a case."

Authorities allege that Backpage.com generated $500 million in prostitution-related revenue from its inception in 2004 until its shutdown in 2018. Lacey and Larkin founded the Phoenix New Times weekly newspaper and held ownership interests in other weeklies, including The Village Voice. They sold their newspapers in 2013 but retained ownership of Backpage.

Carl Ferrer, who was CEO of Backpage when the government shut the site down, pleaded guilty to a separate federal conspiracy charge. The site’s marketing director also pleaded guilty to conspiring to facilitate prostitution and acknowledged participating in a scheme to offer free ads to prostitutes to attract their business.

Jury Deliberations and Hung Jury

After four days of deliberation in the current trial, the jury indicated on Tuesday, November 14, 2023, that they had reached a unanimous decision on only one of the 100 counts listed in the federal indictment. A juror sent a note to the presiding judge stating, "I feel that personal feelings, emotions and what-if opinions have brought us to a standstill. I feel this has become a hung jury." Two jurors signed this note. Last week, jurors had inquired about the procedure if they could not agree on every count. If a jury cannot reach a decision on one or more counts, it is considered hung, which often leads to a retrial on the undecided counts. This case is already in its second trial, with the first having been declared a mistrial in 2021.

The jury is tasked with deliberating charges against Michael Lacey, two former executives, and two former employees. They are collectively accused of facilitating prostitution in violation of the U.S. Travel Act and money laundering through their operation of Backpage. Federal prosecutors contend that the website’s adult section was widely used for prostitution ads disguised as legal adult services, such as escorts.

Key Facts

  • The Backpage.com retrial began with jury selection on Tuesday, August 29, 2023, in Phoenix.
  • Co-defendant James “Jim” Larkin died by suicide on July 31, leading to charges against him being dropped.
  • Five defendants, including co-founder Michael “Mike” Lacey, collectively face 100 felony counts.
  • The first trial in September 2021 ended in a mistrial due to prosecutors' references to child sex trafficking without related charges.
  • Backpage.com was shut down by federal authorities in 2018; authorities allege it generated $500 million in prostitution-related revenue.
  • After four days of deliberation in the current trial, the jury indicated a deadlock on 99 of the 100 counts.