Greg's Corner

Indicted Backpage heads start suing each other

Speaking of Backpage and Delaware, the top brass at the former Backpage are now suing each other in Delaware’s Chancery Court over access to funds allocated for their criminal defense. Through their respective holdings companies, Backapge founders Jim Larkin and Michael Lacey are suing former Backpage CEO Carl Ferrer and 19 others for alleged actions that prevented Lacey and Larkin from accessing legal funds they believe belong to them. For a heavy legalese take on the suit, you can check this article from Law 360.

If you’ll recall, when Backpage was seized by the Federal Government back in April, Ferrer almost immediately pleaded guilty to various charges of facilitating prostitution through Backpage. Shortly after that, the government froze most if not all of Backpage’s assets. Now, Lacey and Larkin seem to be accusing Ferrer of sitting on retainers to various law firms that could possibly aid Larkin and Lacey in their various legal defenses.

I’ll be honest, corporate and financial law has never been my strong suit so I can’t give an opinion on if any of these suits have merit. However, in my opinion, it feels like Larkin and Lacey are starting to experience a slight degree of Karma. Many of Backpage’s victims could not take legal action against Backpage for facilitation human trafficking because of either cost or the pre-FOSTA protections that Backpage was undeserving of. Although, I’m pretty sure Lacey and Larkin are far from destitute. Since they have been charged with allegedly laundering money, it wouldn’t surprise me if they had an emergency legal defense fund squirreled away in some offshore holding the government hasn’t found yet.