DEDHAM − A Braintree couple has joined the list of more than a dozen people suing the owner of Success Real Estate weeks after he abruptly shuttered the business.
Stacey and Christian Ballerino filed a lawsuit in Norfolk Superior Court this week against Stephen Webster, who had real estate offices in Marshfield and Braintree. Webster last month abruptly closed the real estate business, which employed approximately 140 agents.
The lawsuit alleges Webster owes the couple $140,000 from a personal loan and $17,000 in commission Stacey Ballerino earned while working as an agent.
“The Ballerinos are one of many victims in this matter, with over 14 other agents (and likely more) and innocent buyers pursuing Webster and Success for owed commissions, personal loans, and buyer deposits, with a likely exposure of over $1 million,” the lawsuit reads.
According to the lawsuit, Webster and Success have faced “serious financial difficulties” in recent years due to a slowing real estate market, outdated business model and overleveraged expenses.
In order to fund the business and his own life, Webster started borrowing money from friends, business associates and agents who worked for him. The lawsuit states that he received the loans by falsely representing that he would have the ability to repay them in full.
“In actuality, Webster obtained these loans no different than a ‘Ponzi’ scheme as he was simultaneously embezzling over $1 million from Success’ coffers in order to fund business operations and support his extravagant personal lifestyle,” the lawsuit reads.
The Ballerinos in their lawsuit state the lent Webster $200,000 with an agreement it would be paid back, plus $25,000 in interest, by April 1, 2024. They said Webster made several small payments, but still owes them $140,000 on the personal loan, plus $17,000 in commission from a home Stacey Ballerino sold as an agent.
Attorney Bob Ahearn filed three lawsuits in Plymouth courts last month on behalf of 13 plaintiffs. The list of plaintiffs includes a dozen agents as well as Webster’s personal friend and plumber who loaned him a significant amount of money, Ahearn said.
Judges have barred Webster from selling properties before the cases are resolved. The properties named are business offices in Marshfield and Braintree.
The Ballerinos are also seeking an ex parte real estate attachment of $157,000 on three properties owned by Webster to prevent him from selling the property while the lawsuit is ongoing.
This article originally appeared on The Patriot Ledger: South Shore real estate company owner sued again