A fomer executive has admitted stealing more than $1 million from subsidiaries of the Webb Companies in Lexington.
Robert K. Chaffins pleaded guilty Monday in federal court in Lexington to four counts of mail fraud, according to court documents.
Chaffins was a vice-president in the asset management division of the Webb Companies, the well-known commercial real-estate development company in Lexington.
The company set up four “sister entities” to manage commercial developments: Leestown Distribution LLC, Lex/108, Melbourne Distribution Center LLC, and 801 Realty LLC.
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Chaffins’ job included sending bills for lease payments to the tenants at the developments. He had the tenants mail him checks, according to his plea agreement.
Chaffins set up bank accounts with names similar to the developments, such as Robert K. Chaffins DBA 801 Realty, and beginning in 2007, diverted money from the lease payments into his accounts, according to the court document.
Chaffins admitted he took $1,064,522 between 2007 and Jan. 28, 2016.
He used the money for a wide range of costs, including the mortgages on his Lexington home and a beach condo in Florida and lease payments on a Mercedes Benz, according to court documents.
Chaffins will forfeit the car and his bank accounts to the government and sell property.
He is liable for $1,064,522 in restitution to the Webb subsidiaries. Fred Peters, Chaffin’s lawyer, said the former executive will repay the more than $1.0 million in full before his June 26 sentencing.
The charges carry a maximum sentence of 20 years.