A Floral Park real estate attorney was arraigned on Wednesday on grand larceny charges for allegedly embezzling more than $1.2 million from clients, Nassau County District Attorney Anne Donnelly said.
Terrance Dougherty, 36, who represents clients in property transactions, is charged with embezzling the money from the escrow accounts of 20 individuals between March 2021 and November 2024, according to Donnelly’s office.
Dougherty, a resident of Oyster Bay, allegedly withheld sale or down payments from at least 20 clients and kept those funds in an attorney trust account.
Donnelly said an investigation revealed that Dougherty spent the money he embezzled on personal expenses, including gentlemen’s clubs, luxury hotels, nightclubs, restaurants and other purchases, and funding unrelated aspects of his law practice.
“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. Some of those transactions, unfortunately, fell through because of the defendant’s alleged theft,” 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.”
Dougherty was arraigned on two counts of second-degree grand larceny, three counts of third-degree grand larceny, and one count of scheme to defraud. If convicted, he would face between five and 15 years in prison.
The Legal Aid Society is representing Doughterty, wo pleaded not guilty.
The district attorney said an investigation into Dougherty’s attorney trust account showed client funds totaling $1,202,600 were deposited between August 2023 and November 2024.
Records revealed during that investigation showed that Dougherty allegedly withdrew cash from that account and transferred funds from it to business checking and credit card accounts he held.
By Nov. 29, 2024, the account’s balance was $5.35.
Many of the transactions associated with the funds deposited into this account were canceled because closings occurred without Dougherty providing the necessary funds, the DA’s office said.
Donnelly’s office said Dougherty was reported to the Grievance Committee for the 10th Judicial District on Aug. 30, 2024 and stopped practicing from his Floral Park office on Jericho Turnpike, the Law Office of Terrance J. Dougherty, Esq, that same month.
He surrendered to the DA’s detective investigators on Wednesday.
Donnelly’s office advised members of the public to contact the Criminal Complaint Unit at 516-571-3505 if they believe they may have been a victim of Dougherty and have not yet filed a complaint.
