A real estate attorney from Floral Park has been indicted for allegedly stealing more than $1.2 million in escrow funds from at least 20 individuals and using the money to finance nights at adult entertainment clubs, luxury hotels, and personal expenses unrelated to his clients’ property transactions, Nassau County prosecutors said.
On April 30, 2025, Terrance Dougherty, 36, of Oyster Bay, was arraigned before Judge Veronica Renta Irwin on five charges, including two counts of Grand Larceny in the Second Degree, three counts of Grand Larceny in the Third Degree, and one count of Scheme to Defraud in the First Degree. He pleaded not guilty, was released to pretrial services, and ordered to surrender his passport. He is due back in court on May 8.
According to prosecutors, Dougherty worked as a real estate attorney with an office on Jericho Turnpike in Floral Park. He maintained an Attorney Trust Account intended to hold client funds, such as down payments and sale proceeds from real estate transactions.
Between March 2021 and November 2024, Dougherty allegedly withheld sale proceeds or down payment funds from at least 20 individuals. In many cases, the missing money caused real estate transactions to collapse or forced closings to proceed without the necessary funds.
An investigation by the Nassau County District Attorney’s Office revealed that between August 2023 and November 2024, $1,202,600 was deposited into Dougherty’s attorney trust account. By the end of November, the account had been drained to a balance of just $5.35.
Investigators allege that Dougherty transferred client funds into other accounts he controlled, used the money to pay credit card bills, and withdrew large sums in cash. Records show that from May to August 2024, he used client funds to finance visits to gentleman’s clubs, nightclubs, luxury restaurants, and hotels. He was reported to the Grievance Committee for the 10th Judicial District on August 30, 2024, and ceased practicing law from his Floral Park office later that month.
Dougherty surrendered to Nassau County District Attorney Detective Investigators on April 30, 2025.
“This defendant shamelessly embezzled more than a million dollars from dozens of individuals who trusted him to handle property sales and purchases, according to the charges,” Nassau County District Attorney Anne T. Donnelly said. “Instead of acting as a fiduciary and safeguarding his clients’ funds, this defendant allegedly burned through their money on high-roller nights out at gentleman’s clubs and other entertainment venues. It is a disgraceful abuse of trust between an attorney and his clients, and I will not tolerate it.”
Anyone who believes they may have been victimized by Dougherty and has not yet filed a complaint is encouraged to contact the DA’s Criminal Complaint Unit at (516) 571-3505.