Cambria: Government 'Not Effective' During Backpage Appeals Hearing (XBIZ)

Read the full article by Gustavo Turner at XBIZ.com

PASADENA, Calif. — The 9th Circuit Court of Appeals today heard oral arguments from the appellants and the U.S. government regarding the ongoing saga related to the shutting down of the Backpage.com classifieds website and the seizure of millions of dollars in assets.

The case, known as “USA vs. Larkin” after Jim Larkin, one of the Backpage owners with Michael Lacey, has been unraveling since the defendants’ March 28, 2018 indictment in Phoeniz, Ariz.

Bob Corn-Revere, the attorney representing the former Backpage owners, argued in front of a three-judge panel. The judges were Milan Smith, Michelle Friedland and Carol Bagley Amon.

“We have asked the 9th circuit to vacate the stay that was issued by the district court preventing us from litigating the legality of the seizure of Backpage funds,” Paul Cambria, counsel for Lacey and part of the defense team, told XBIZ. “Today we asked the appellate court to vacate that, and the government conceded during oral arguments that we were correct.”

“The government was not effective at all and they conceded that the stay had to be vacated,” Cambria added.

“We’re going now to ask the district court to expedite the proceeding so we can have our day in court and prove that the seizures were unlawful,” Cambria said.

According to the defense team, Cambria said, “it’s pretty clear that they’re gonna send it back to the district court, where we can make our argument that the seizures were unlawful and the government has to return the property.”

“At least something positive came out if this hearing.”

Now attorneys for both the former Backpage owners and the government have to wait for the Court of Appeals to rule.