By Muriel Kane
Sunday, April 1, 2012 19:01 EDT
New York Times columnist Nicholas Kristof has uncovered some unusual information on one of Goldman Sachs’ investments that has the private equity firm furiously attempting to control the damage.
Kristof revealed on Saturday that a website called Backpage.com, which he describes as “the biggest forum for sex trafficking of under-age girls in the United States,” was until this week partially owned by Goldman Sachs.
“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,” Kristof explained. “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.”
According to Kristof, Goldman Sachs began “frantically” unloading its shares after he started making inquiries and called him on Friday to say it had just agreed to sell its stake in the business to management. A Goldman Sachs spokesperson insisted, “We had no influence over operations.”
Kristof emphasizes that Backpage “has 70 percent of the market for prostitution ads” and that although “many escort ads on Backpage are placed by consenting adults,” the site also plays a major role in coercive sex trafficking. He cites the recent case of a fifteen year old girl who was drugged, tied up, raped, and sold to johns through Backpage and other sites.
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http://www.rawstory.com/rs/2012/04/01/g ... age-girls/