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Backpage Co-Founder Michael Lacey Sentenced to Five Years in Prison

Backpage co-founder Michael Lacey was sentenced to five years for one international concealment money-laundering conviction. His appeal bail did not overturn the verdict.
From TheFinanceBase Team2 min to read
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Michael Lacey, a co-founder and owner of Backpage, was sentenced in federal court in Arizona on August 28, 2024, to five years in prison after a jury convicted him of one count of international concealment money laundering. The sentence also includes a $3 million fine and three years of supervised release.

What Michael Lacey was convicted of

A jury convicted Lacey in November 2023 of one count of international concealment money laundering. It did not return verdicts on many other counts, so the verdict should not be described as a conviction on all the prostitution-facilitation and money-laundering charges in the case. The formal judgment identifies Count 100 as the basis for his sentence. The Justice Department’s sentencing announcement and its account of the verdict describe the result.

Sentence and comparison with the other owners

Defendant Prison sentence Other sentence terms
Michael Lacey 60 months (five years) $3 million fine; three years of supervised release; credit for time served
Scott Spear 10 years Three years of supervised release
John “Jed” Brunst 10 years Three years of supervised release

The court entered Lacey’s formal judgment on August 29, 2024; the DOJ announced the sentencing on August 28. Spear and Brunst were sentenced at the same time. These terms are reported in the DOJ announcement and the District of Arizona docket. The available records cited here do not establish why the court imposed different prison terms, so the difference should not be attributed to a specific reason.

Why Lacey was sentenced

The DOJ said Backpage was seized by the United States in April 2018. In describing the prosecution’s case, the department said trial evidence showed that the owners knowingly promoted prostitution and routed proceeds through foreign shell companies. It reported that the alleged conspiracy earned more than $500 million over its life. Those are the DOJ’s descriptions of the broader case, not findings that Lacey was convicted of every alleged act; his jury conviction was the single money-laundering count described above. The DOJ release also quotes Criminal Division head Nicole M. Argentieri: “Their sentences should serve as a stark reminder that the Criminal Division and its law enforcement partners are committed to protecting victims and following the money to unmask those who exploit human beings for financial gain.” That is the department’s stated view, not a separate court finding.

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Lacey’s appeal and custody status

On November 21, 2024, the Ninth Circuit granted Lacey bail pending appeal, citing a substantial question that could result in reversal of his single-count conviction. Bail pending appeal changes whether he remains in custody while the appeal proceeds; it does not itself overturn the conviction or sentence. The district court docket records the release on bail. The sources cited here do not establish a final appellate disposition through October 7, 2026, so they do not establish that the conviction has been reversed or otherwise finally resolved.

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Other Backpage case outcomes

The outcomes for other former Backpage executives are separate from Lacey’s sentence. The DOJ reported that co-founder and CEO Carl Ferrer pleaded guilty in April 2018 to conspiracy to facilitate prostitution using an interstate or foreign commerce facility and money laundering; sales and marketing director Dan Hyer pleaded guilty in August 2018 to a prostitution-facilitation conspiracy. The Associated Press reported that Ferrer received three years of probation in September 2025 and cooperated with prosecutors. Those pleas and Ferrer’s later sentence do not change what Lacey’s jury decided or the terms imposed on him. AP’s report on Ferrer’s sentencing covers that separate outcome.

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