Zero Tolerance: Part II

We previously informed our readers of the precedent-setting move made by the authorities in the state of Delaware after they summarily invalidated the business licenses of four companies who had worked to support Backpage in its quest to sexually traffic as many children as it could to boost its bottom line.

More background has come to light on this encouraging new ‘zero policy’ towards those who aid and abet blatantly criminal organizations like Backpage.

Throughout its existence the Backpage LLC was listed in “good standing” with the Delaware Department of State – a term that indicates nothing more than that the company had paid its $300 annual franchise tax.

However, as we first reported last month, a recent request made by one of Backpage’s founders to ditch his ankle monitor in order to more fully enjoy an upcoming Hawaiian beach vacation while awaiting trial prompted further scrutiny from investigators. It was this investigation which would culminate in the release of new Backpage evidence.

The Backpage cabal was long shielded by federal law and court rulings that protect websites from civil or criminal sanctions stemming from the illicit content its users post.

Indeed, the current standing charges pending against Backpage had been focused exclusively on illegal activity that involves interstate commerce and travel.

But the state Attorney General’s Office changed tactics by backing an amendment to the state’s corporate law that would allow it to seek a court order to require that the Delaware Department of State dissolve certain legal entities registered there deemed to have egregiously broken the law.

The happy result of this evidentiary inquiry is the creation of the new zero tolerance policy which will effectuate LLC, Website Technologies LLC, Posting Solutions LLC and Amstel River Holdings LLC all losing their certificates of formation 31 days after the current federal criminal charges against the company have been resolved. This is excellent news.

Exactly when the criminal charges will be resolved is currently unknown as proceedings are still pending, but when they are settled you will read about it here first.

Print Friendly, PDF & Email

Comments are closed.