Massachusetts broker Stephen D. Webster has been indicted for allegedly stealing $11.6 million from consumers and agents by diverting escrow funds into his business and personal accounts.
Massachusetts broker Stephen D. Webster has been indicted for allegedly stealing $11.6 million from consumers and agents by diverting escrow funds into his business and personal accounts.
State regulators began investigating Webster, broker and principal of the now-defunct Success! Real Estate, in 2023. Webster reportedly submitted a falsified bank letter during an audit stating that he had $1 million in an escrow account. However, a Boston.com report said[1] that regulators found Webster only had $7,321.51 in the account.
“[Webster and his company] committed unfair and deceptive business practices[2] by accepting sale proceed funds and failing to pay commissions that they had agreed to, failing to honor commission checks that were sent to the Plaintiff[s] for transactions and sales that had already closed, and, based on information and belief, by taking, embezzling and/or absconding the funds from sales of real estate property transactions” that had already closed,” court documents read.
Webster allegedly used the diverted escrow funds[3] to pay high-interest loans and other personal debt, gamble and make luxury purchases, including two high-end cars and several Florida rentals.
More than a dozen former Success! Real Estate agents are suing Webster for unpaid commissions, totaling nearly $500,000. Plaintiffs, such as Kristen Dailey, claimed Webster never issued them commission checks after closings. Other plaintiffs said Webster issued commission checks, but they bounced.
The remaining $11 million accounts for people who loaned money to Webster.
Webster closed Success! Real Estate in December 2024 and relocated to Florida.
Webster spoke with The Patriot Ledger in April[4] and said he was in the process of starting a new business, which would help him “make things right.” The broker was arrested in Palm Beach on Sept. 30 and is awaiting extradition back to Plymouth County, where he faces four counts: one count of fiduciary embezzlement, larceny over $1,200 by a single scheme, witness intimidation and publishing a false financial statement.
References
- ^ a Boston.com report said (www.boston.com)
- ^ unfair and deceptive business practices (www.inman.com)
- ^ Webster allegedly used the diverted escrow funds (www.boston25news.com)
- ^ Webster spoke with The Patriot Ledger in April (www.patriotledger.com)
- ^ Email Marian McPherson (www.inman.com)