Axios Phoenix

August 29, 2024
It's Thursday! That three-day weekend is just around the corner.
- Today's weather: Sunny with a high of 109.
Today's newsletter is 886 words — a 3.5-minute read.
1 big thing: New Times founder gets five years in Backpage case
Michael Lacey, the founder and former editor of Phoenix New Times, was sentenced yesterday to five years in prison and fined $3 million on a money laundering charge in a case over prostitution and a classified advertising website.
The big picture: The case stemmed from allegations that Backpage.com knowingly facilitated prostitution through its online ads.
- Lacey, 76, was convicted last November on one count of international concealment money laundering for transferring $16.5 million into a trust in Hungary to shield it from government seizure.
- The jury deadlocked on other charges against Lacey related to money laundering and facilitation of prostitution.
- John "Jed" Brunst, the company's former chief financial officer, and Scott Spear, a former executive vice president, were each sentenced to 10 years for money laundering and facilitation of prostitution.
Catch up quick: Prosecutors accused Brunst, Lacey and Spear of using Backpage to intentionally facilitate prostitution with ads said to have generated $500 million in revenue.
- They sold Backpage to CEO Carl Ferrer for $600 million in 2015, but Lacey and cofounder Jim Larkin remained involved in the business.
- Federal authorities shut down Backpage in 2018 and indicted Brunst, Ferrer, Lacey, Larkin, Spear and others.
- Ferrer pleaded guilty in 2018 to a conspiracy charge involving money laundering and facilitation of prostitution and became a government witness in the case.
- A mistrial was declared in 2021. Larkin died by suicide in 2023 shortly before he was scheduled to face trial.
Flashback: Lacey founded the New Times in 1970, and he and former business partner Larkin grew their chain of alternative weeklies throughout the U.S., later buying New York's Village Voice tabloid.
- Lacey, Larkin and Ferrer launched Backpage in 2004.
What we're watching: Defense attorneys said they plan to appeal the convictions.
- U.S. District Court Judge Diane Humetewa ordered Brunst, Lacey and Spear to report to U.S. marshals in two weeks to begin serving their sentences, per the Associated Press.
What's next: Humetewa dismissed many outstanding charges against Lacey in April, but federal prosecutors plan to retry him on remaining prostitution and money laundering charges.
2. 🛴 Renting a scooter just got easier
You can now rent a Bird scooter in Tempe using the Lyft app.
Why it matters: The new partnership could mean a lot more electric scooters around town.
How it works: Riders can tap the scooter icon at the bottom of the Lyft screen to see a map of available scooters.
- They can then unlock a scooter by using the Lyft app to scan its QR code.
- Participating scooters will have a Lyft sticker on them.
- Everything is done in the app, so riders don't have to download a separate tool or add new payment information.
Zoom out: Tempe is one of 26 cities nationwide included in the new partnership, with more to follow in the coming weeks.
What they're saying: "Our ultimate goal is to make it just as easy to get around cities via multimodal transportation as it is with a personal car," Bird co-CEO Stewart Lyons said in a statement.
3. Boats, boats, boats!
Looking to soak up what's left of summer with a waterfront view? The "Airbnb of boats" has plenty of unique rental options to use on Arizona's lakes.
How it works: Hundreds of Arizonans rent their watercraft — pontoons, jet skis, speed boats, party barges and more — on Getmyboat.
- The boats can be rented by hour or day, and many come with a captain to handle navigation.
3 boats to go: Here are some of the most interesting options available for rent in Arizona:
- Barbie Party Boat ($250/hour): A very pink pontoon with a water slide and room for eight passengers. Available at Lake Pleasant.
- Hot Tub Boat Charter ($150/hour): Billed as Lake Havasu's only hot tub boat, this vessel fits 12 people.
- Patriotic Party Barge ($324/hour): This 38-foot "floating paradise" fits 20 people and comes with a water slide on Lake Pleasant.
4. Chips & salsa: Ex-Saguaro players win appeal
🏈 Former Saguaro High School football players who say they faced racial hostility at the school won their transfer appeals and will be allowed to play the entire 2024 season for their new schools. (AZcentral)
⛔ Grand Canyon National Park hotels will be closed for overnight stays through Labor Day after the Transcanyon Waterline experienced multiple breaks. (AP)
✈️ Southwest Airlines will begin offering red-eye flights for the first time early next year, including an overnight route from Sky Harbor to Baltimore/Washington International Thurgood Marshall Airport. (Phoenix Business Journal)
5. Things to do this weekend
Labor Day is Monday, and if you're looking for something to do during the three-day weekend, we've got you covered.
Head to WestWorld of Scottsdale tomorrow and Saturday to see local and national African-American rodeo competitors participate in bull riding, tie-down roping and more.
- Tickets from $25
Joe's Farm Grill kicks off its annual month-long "Hot Dog Days" tomorrow featuring a menu of creatively topped dogs, like the green chile pork elote and country sausage gravy.
- Free entry
This funny guy from "White Chicks" and "Scary Movie" will be at Stand Up Live in downtown Phoenix tomorrow through Sunday.
- Tickets from $50
Enjoy a therapeutic drum circle at the Chandler Public Library Sunday afternoon. Bring a drum or borrow a percussion instrument at the library.
- Free!
😅 Jeremy is willing to start a petition demanding air conditioning in the Sandra Day O'Connor U.S. Courthouse.
🛥️ Jessica wants to rent a pontoon boat now.
This newsletter was edited by Gigi Sukin and copy edited by Jay Bennett.
To ensure the newsletter reaches your inbox, please add [email protected] to your contacts. If you use Gmail, just drag this email to your "Primary" tab. For other mail clients, check out this page.
Sign up for Axios Phoenix








