The sudden failure of Success Real Estate is bringing on a trove of complaints and a trio of lawsuits from the Boston-based brokerage’s agents.
At least 13 agents have filed lawsuits against Success and its owner, Stephen Webster, WCVB reported. The agents are accusing Webster of embezzlement and alleging they are owed hundreds of thousands of dollars, from personal loans to money that was supposed to be held in escrow.
The drama kicked off on Dec. 14 when Webster announced Success’ closure, according to the lawsuits. The company’s website and Facebook page promptly disappeared.
When the plaintiffs went to deposit their commission earnings, the checks bounced, according to two of the lawsuits. One agent alleged checks adding up to more than $81,000 bounced and that she is owed an additional $61,000, not to mention a $10,400 fee she personally paid for a closing that was allegedly supposed to come from an escrow account.
In one lawsuit, seven agents claim they are owed a combined total of more than $105,000 for commission checks dated over a one-week period at the beginning of last month.
In one of the lawsuits, three agents allege they made personal loans to either Webster or Success, claiming they were “fraudulently induced … to make personal loans to the Defendants.” The trio claim they are owed $132,000 for those loans.
Bob Ahearn, a lawyer representing the plaintiffs, told Boston 25 News that the alleged lack of money in escrow accounts could scuttle closings in the coming weeks, saying the situation is “going to get really ugly.” Ahearn does not believe the plaintiffs will be able to recover all of the money they claim they’re owed.
The Massachusetts Division of Occupational Licensure and the Board of Registration of Real Estate Brokers and Salespersons are investigating the complaints against Success and Webster.
Success claimed to transact more than $1 billion in sales over the last five years, according to Boston 25 News. It was in business for 32 years.
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