LI Real Estate Attorney Who Blew $1M+ Of Clients' Money On Gentlemen's Clubs, Luxury Hotels Sentenced: DA

FLORAL PARK, NY. — A Floral Park real estate attorney was sentenced to up to 10-and-a-half years in prison Wednesday after he embezzled more than $1.7 million from more than 30 clients and spent the money on adult entertainment, night clubs and personal expenses, prosecutors said.

Terrance Dougherty, 35, pleaded guilty to 13 counts of second-degree grand larceny and one count of first-degree scheme to defraud on Sept. 8, Nassau County District Attorney Anne Donnelly said.

Dougherty represented clients in real estate transactions, maintaining an attorney trust account to hold funds for clients during transactions including down payment funds and sale proceeds, the DA said.

Between 2021 and 2024, prosecutors said Dougherty withheld down payment funds or sale proceeds from at least 32 clients, with many transactions being canceled due to missing funds. A total of $1,791,600 was deposited into the account in that timeframe, but the account balance was $5.35 as of Nov. 29, 2024, prosecutors said.

Records showed that Dougherty had withdrawn money from the attorney trust account, either through cash withdrawals, transfers to his business checking accounts or credit card accounts he had opened, the DA said.

Between May and August of 2024, prosecutors said Dougherty used the money to pay for personal expenses including trips to gentleman’s clubs, nightclubs, luxury hotels and restaurants, the DA said.

"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 $1 million, spending down the escrow funds in his business trust account until it was almost zeroed out. Over just five days, this defendant unbelievably spent nearly $200,000 at gentleman’s clubs in New York City and on Long Island. He was living it up while his clients faced having nowhere to live. Seeing their dreams of home ownership 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"

Dougherty was sentenced to between three-and-a-half and 10-and-a-half years in prison Wednesday, the DA said. The court issued civil judgment orders for 32 victims amounting to $1,791,600, Donnelly added.

“Mr. Dougherty has taken full responsibility for his actions, and he’s very remorseful,” Dougherty’s attorney, Karen Johnston, told Patch. “He hopes to make it up to those people who have lost trust in him, and to somehow get trust back with his victims, as well as his family.”