Lacey had founded the Phoenix New Times weekly newspaper with James Larkin, who was charged in the case and died by suicide in July.
PHOENIX — A founder of the lucrative classified site Backpage.com will face his second trial on charges of facilitating prostitution and laundering money in what authorities say was a scheme to knowingly sell ads for sex on the site.
In all, five former Backpage operators have pleaded not guilty to charges of facilitating prostitution. Of the five, Lacey and two others have pleaded not guilty to money laundering charges. Authorities say Backpage employees would identify prostitutes through Google searches, then call and offer them a free ad. The site also is accused of having a business arrangement in which it would place ads on another site that lets customers post reviews of their experiences with prostitutes.
At trial, the Backpage defendants are barred from bringing up a 2013 memo by federal prosecutors who examined the site and said at the time that they hadn't uncovered evidence of a pattern of recklessness toward minors or admissions from key participants that the site was used for prostitution.
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