A Floral Park real estate attorney was sentenced to up to ten-and-a-half years in prison for an embezzlement scheme that stole more than $1.7 million from the escrow accounts of more than 30 clients. The defendant later spent the money on adult entertainment, nightclubs, and other personal expenses, and to carry on his law practice.
Nassau County District Attorney Anne Donnelly said that the defendant was a practicing real estate attorney with an office on Jericho Turnpike in Floral Park, representing clients in the sale and purchase of property. He maintained an Attorney Trust Account in which he held client funds from various real estate transactions, including down payment funds and sale proceeds.
Between March 2021 and November 2024, Terrance Dougherty worked with at least 32 clients on real estate transactions. According to the investigation, Dougherty withheld sale proceeds or down payment funds from those individuals. Many of the transactions were cancelled because of the missing funds or closings occurred without the defendant providing the necessary funds.
A review of the defendant’s account showed that client funds consisting of $1,791,600 were deposited into the account between March 2021 and November 2024. By November 29, 2024, the balance was $5.35.
Records reviewed during the course of the investigation revealed that Dougherty withdrew funds from the attorney account through cash withdrawals, transfers to another business checking account held by the defendant, and to various credit card accounts that he opened. Dougherty used his clients’ funds to pay for various personal expenses between May 2024 and August 2024, including visits to gentlemen’s clubs, nightclubs, luxury hotels, and restaurants.
Dougherty was reported to the Grievance Committee for the 10th Judicial District on August 30, 2024. He ceased practicing from his Floral Park office in August 2024. He surrendered to NCDA Detective Investigators on April 30, 2025.
Dougherty, 35, of Oyster Bay, pleaded guilty on September 8, 2025, before Judge Christopher Hoefenkrieg to 13 counts of Grand Larceny in the Second Degree (a Class C felony) and one count of Scheme to Defraud in the First Degree (a Class E felony).
On November 19, Dougherty was sentenced to 3-1/2 to 10-1/2 years in prison. Civil judgment orders were also issued by the court for 32 victims totaling $1,791,600.
“Terrance Dougherty threw his life and career away for a good time on his clients’ dime,” Donnelly said. “A thief who blew through more than a million dollars, spending down the escrow funds in his business trust account until it was almost zeroed out. … He was living it up while his clients faced having nowhere to live. Seeing their dreams of homeownership dashed, their financial stability jeopardized, and their sense of security forever tainted. Terrance Dougherty is a disgrace to the legal profession, and he will find no luxury accommodations over the next decade in state prison.”