The former owner of a Massachusetts real estate firm has been charged with embezzling more than $11.6 million from client escrow accounts to support a lavish lifestyle, according to prosecutors. Stephen Webster, who owned the now-closed Success! Real Estate, was arrested in Florida and faces multiple felony charges in Plymouth Superior Court.
Court documents allege Webster systematically diverted funds meant to be held in trust for real estate transactions. Instead, the money was allegedly used for personal expenses, including luxury vehicles, gambling, and international travel.
Key Takeaways
- Stephen Webster, owner of Success! Real Estate, is accused of diverting over $11.6 million from client escrow accounts.
- He faces four felony charges, including fiduciary embezzlement, larceny, and witness intimidation.
- Prosecutors claim the funds were used for luxury cars, a Florida apartment, a Hawaii vacation, and casino expenses.
- Webster was arrested in Florida on September 29 and is being held in Palm Beach County.
- His real estate firm, Success!, abruptly shut down in December 2024, leaving employees and clients with significant financial losses.
Details of the Charges
Stephen Webster was indicted in September by a Plymouth Superior Court grand jury on four serious charges. According to the court filings, these include fiduciary embezzlement, larceny by scheme over $1,200, witness intimidation, and submitting a false financial statement.
The case was detailed in documents filed by Assistant Plymouth District Attorney Alex Zane, which outline what prosecutors describe as a prolonged and deliberate scheme. Webster was apprehended in Florida on September 29 as a fugitive from justice and is currently detained at the Palm Beach County Jail.
What is Fiduciary Embezzlement?
Fiduciary embezzlement occurs when a person entrusted to manage or protect someone else's money or assets (a fiduciary, like a real estate broker holding escrow funds) fraudulently takes that property for their own benefit. Escrow accounts are legally required to be separate and untouched except for their intended real estate transaction purpose.
How the Alleged Scheme Unfolded
Prosecutors allege that Webster’s misuse of client funds dates back to at least 2023. The scheme reportedly involved the commingling of funds, where money from secure escrow accounts was moved into business and personal checking accounts to cover a wide range of expenses.
An investigation into Success! Real Estate began in March 2023. During this period, Webster allegedly presented state investigators with a forged bank letter indicating an escrow account held approximately $1 million. However, prosecutors state the actual balance in that account was only about $7,000.
Escalating Financial Mismanagement
By January 2024, the situation had reportedly worsened significantly. Escrow funds became the main source of cash for both the business's operations and Webster's personal spending. Court documents claim that on a monthly basis, large sums were transferred from escrow to pay for employee salaries, utility bills, and personal debts.
According to the allegations, some months saw more than 80% of the deposits into one of the company's business accounts originating directly from client escrow funds. Prosecutors allege that Webster often moved more than $1 million each month using these methods.
Financial Manipulation Tactics
Prosecutors noted that Webster used strategies like "check-kiting" and "high-velocity transfers." Assistant DA Alex Zane described these as "hallmarks of cash-flow manipulation inconsistent with lawful escrow management," intended to hide financial shortfalls and create a false appearance of liquidity.
Financing a Lavish Lifestyle
The diverted funds allegedly paid for numerous luxury purchases and lifestyle expenses. Even as he borrowed more money, Webster continued to spend lavishly, with prosecutors arguing that the client funds were the primary source of his liquidity.
Some of the documented expenses include:
- The purchase of a 2025 BMW 430i for over $70,000 in August 2024.
- Ongoing monthly payments for two Tesla Model 3 vehicles valued at a combined $121,000.
- Monthly rent of $8,250 for an apartment in Deerfield Beach, Florida.
- A vacation to Hawaii.
- Over $65,000 in restaurant bills throughout 2024.
Gambling and Travel Expenses
While living primarily in Florida, Webster reportedly flew to Massachusetts regularly to oversee his business. During these trips, he often stayed at the Encore casino in Everett, where he also gambled. According to court filings, he withdrew nearly $89,000 from casino ATMs in a single year.
"His actions gradually moved from fiduciary embezzlement into outright theft," Assistant DA Alex Zane wrote in the court filing, describing the progression of the alleged crimes.
The Collapse of Success! Real Estate
The financial scheme became unsustainable by November 2024, when Webster allegedly informed creditors that he was "essentially out of money." At this point, he reportedly began asking employees for emergency cash loans to keep the business afloat.
Success! Real Estate closed its doors abruptly in December 2024. At the time of the closure, approximately $350,000 in outstanding loans from his employees remained unpaid. These losses are separate from the criminal charges.
Civil Lawsuits Add to Legal Troubles
In addition to the criminal case, Webster is facing multiple civil lawsuits. In January 2025, a dozen brokers formerly with his firm sued him, alleging he withheld nearly $500,000 in commissions and loan repayments. He is also being sued by his ex-wife, who is seeking to enforce alimony payments of $3,000 per month and $10,000 per month for home maintenance as part of their divorce agreement.
In a final attempt to secure funds, Webster tried to sell the company's name in December 2024. During a meeting with potential buyers, he reportedly appeared "visibly unsettled" and admitted to a shortfall of around $970,000. An attendee at the meeting described the atmosphere as being like "the Titanic."
Even after the company's collapse, prosecutors allege Webster continued to prioritize personal luxury expenses.
"Even after the company’s collapse in December 2024, the defendant continued making payments on luxury vehicles, jet skis, a boat, and personal credit cards rather than directing resources toward curing escrow shortfalls," Zane wrote.
The case is now proceeding in Plymouth Superior Court, where Webster will face the charges brought against him.
