Goldman Sachs Owns 16 Percent In Child Prostitution and Sex Trafficking Website
Source: New York Times Sunday Review
Financiers and Sex Trafficking
By NICHOLAS D. KRISTOF
March 31, 2012
THE biggest forum for sex trafficking of under-age girls in the United States appears to be a Web site called Backpage.com.
This emporium for girls and women — some under age or forced into prostitution — is in turn owned by an opaque private company called Village Voice Media. Until now it has been unclear who the ultimate owners are.
That mystery is solved. The owners turn out to include private equity financiers, including Goldman Sachs with a 16 percent stake.
Goldman Sachs was mortified when I began inquiring last week about its stake in America’s leading Web site for prostitution ads. It began working frantically to unload its shares, and on Friday afternoon it called to say that it had just signed an agreement to sell its stake to management.
“We had no influence over operations,” Andrea Raphael, a Goldman Sachs spokeswoman, told me.
Let’s back up for a moment. There’s no doubt that many escort ads on Backpage are placed by consenting adults. But it’s equally clear that Backpage plays a major role in the trafficking of minors or women who are coerced. In one recent case in New York City, prosecutors say that a 15-year-old girl was drugged, tied up, raped and sold to johns through Backpage and other sites.
Backpage has 70 percent of the market for prostitution ads, according to AIM Group, a trade organization.