The chief executive of a website that authorities have dubbed an "online brothel" pleaded guilty in California to reduced charges Thursday and agreed to cooperate in prosecuting the site's creators.
Backpage CEO Carl Ferrer has pleaded guilty to conspiracy to facilitate prostitution using a facility in interstate or foreign commerce and to engage in money laundering, according to the U.S. Justice Department.
Ferrer will serve no more than five years in state prison under the plea agreement.
The classified ads website was seized last Friday, and FBI officials searched the Sedona home of Michael Lacey. Lacey and Jim Larkin, former Phoenix New Times execs, founded Backpage.
The two pleaded not guilty to the charges against them.
Ferrer agreed to cooperate in the ongoing prosecution against the site's creators as part of the agreement.
James Larkin underwent a hearing Thursday over whether to release him from jail. Magistrate Judge Bridget Bade said attorneys have agreed on the terms of release, but other details must be ironed out. The hearing will resume Monday.
The Associate Press contributed to this report
