A Floral Park real estate attorney pleaded guilty to grand larceny and other charges for embezzling more than $1.7 million from the escrow accounts of 30 clients and then spending the money on adult entertainment, nightclubs, other personal expenses and to carry on his law practice.
Terrance Dougherty 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, Dougherty worked with at least 30 clients on real estate transactions. According to the investigation, he allegedly withheld sale proceeds or down payment funds from those individuals. Many of the transactions were cancelled because of missing funds or closings occurred without Dougherty providing the necessary funds.
A review of the defendant’s account showed that client funds consisting of $1,721,600 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 allegedly 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 opened by the defendant.
Dougherty allegedly used his client’s funds to pay for various personal expenses between May 2024 and August 2024, including visits to gentlemen’s clubs, nightclubs, and luxury hotels and restaurants.
Dougherty was reported to the Grievance Committee for the 10th Judicial District on August 30, 2024. He soon stopped practicing from his Floral Park office. He surrendered to NCDA Detective Investigators on April 30, 2025.
Dougherty, 39, of Oyster Bay, pleaded guilty 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). He is due back in court on November 6, 2025, and is expected to receive a sentence of 3-1/2 to 10-1/2 years in prison.
“Without shame or remorse, Terrance Dougherty stole millions of dollars from his clients and blew it on gentlemen’s clubs, luxury hotels, and other extravagant purchases,” said Nassau County District Attorney Anne Donnelly. “As he partied, dozens of his clients faced cancelled closings and the realization that they had been ripped off and their money was gone. Real Estate attorneys hold their clients’ hopes in their hands and are trusted with huge sums of money to make their dreams a reality. Doughtery crushed those dreams for a good time and now, with today’s plea, the party is over.”