Massachusetts Prosecutors Say Real Estate Broker Embezzled $11.6M From Escrow Accounts And Agent Commissions

Massachusetts prosecutors are alleging a Plymouth real estate broker embezzled more than $11.6 million from his former real estate office. Authories in Palm Beach, Florida are holding Stephen D. Webster as Webster fights extradiction. 

Prosecutors say Webster drained escrow accounts and broker commissions to fund what they called an ‘extravagant lifestyle. Webster had a fondness for casinos and luxury cars. He also spent $8,250-a-month on a Palm Beach apartment.

Webster also is also dealing with an expensive divorce settlement. Court filings state that his ex-wife, Johnna M. Webster, is demanding a $4 million attachment on several of his properties.

The filings cite obligations that include $3,000 a month in child support and $2,167 for her living expenses. The filings also show an estimated $10,000 a month to maintain the couple’s marital home in Marshfield.

In one filing, Plymouth Assistant District Attorney Alex Zane wrote:

“These funds covered payments on merchant cash advances, bank loans, credit cards, auto and motorsports financing, gambling expenditures, travel, dining, and family transfers.”

The spending detailed in court records includes multiple trips to casinos and Webster allegedly withdrawing over $88,000 from ATMs. 

Webster also put down an $11,000 deposit on a $70,000 BMW 430i. He already owned two Tesla Model 3s worth $121,000.

Webster also continued making payments on jet skis and a boat in Florida after shutting down his company, Success! Real Estate in December 2024 rather than repaying escrow shortfalls.

Webster Kept Living Like A King Instead Of Repaying Escrow Shortfalls

The sudden closure blindsided about 140 agents. The closure left agents and their clients with pending transactions in limbo.

One of those agents, Stacey Ballerino, has filed a suit claiming Webster owes her $140,000 on a personal loan. Webster also owe her a $17,000 commission check. Ballerino alleges she deposited the check two days before the firm’s collapse. However, Webster never paid it.

Ballerino’s attorney Rich Vetstein told the media that Webster’s alleged scheme has left victims reeling: 

“He was stealing from innocent people to fund a luxury lifestyle while leaving agents and clients holding the bag.”

Victims have filed at least six civil suits against Webster. Victims are seeking $1.2 million with losses expected to rise. 

Prosecutors say Webster misled agents into handing over personal loans. He made them believe they were helping the business while others lost hundreds of thousands in unpaid commissions.

Police arrested Webster in Palm Beach on September 29, 2025 as a fugitive from justice. 

He is fighting extradition to Massachusetts. Massachusetts authorites have charged him with:

• fiduciary embezzlement,
• larceny by scheme over $1,200,
• witness intimidation,
• filing a false financial statement.

Prosecutors say they are seeking Webster to post a $100,000 cash  bond to get out of jail. 

Authorities also accuse him of covering up the scheme. Prosecutors say Webster gave state investigators a forged bank letter. The letter falsely claimed he had $1 million in an escrow account. However, the true balance was closer to $7,000. 

The properties now tied up in lawsuits. Webster’s ex-wife’s divorce filings include the family’s Marshfield home, Success Real Estate’s main office in Marshfield. In addition it shows another office building in Braintree.

Read More About Shady Real Estate Brokers On MFI-Miami.com.