Bail hearing to resume for jailed founder of Backspace.com

PHOENIX (AP) — A bail hearing will resume Friday for a founder of the classified advertising site Backpage.com who is accused of knowingly publishing ads for sexual services.

The hearing for Michael Lacey comes a day authorities revealed that the site’s chief executive, Carl Ferrer, had pleaded guilty to a federal conspiracy charge and agreed to testify against others.

Ferrer also pleaded guilty to state money laundering charges in California.

The company has pleaded guilty to human trafficking in Texas and money laundering conspiracy in Arizona.

Lacey, co-founder James Larkin and five Backpage.com employees were arrested in Arizona on federal charges.

The site founders and four of the five employees have pleaded not guilty.

Lacey and Larkin have been jailed for the last week on federal charges of facilitating prostitution and money laundering.