LI Real Estate Attorney Embezzled $1.2 Million From Clients: DA

MINEOLA, NY — A Floral Park real estate attorney was arraigned on Wednesday on grand larceny charges for allegedly embezzling more than $1.2 million from the escrow accounts of 20 people 2021 and 2024, prosecutors said.

Terrance Dougherty, 36, of Oyster Bay, was arraigned on two counts of second-degree grand larceny, three counts of third-degree grand larceny and one count of first-degree scheme to defraud, Nassau County District Attorney Anne Donnelly.

Dougherty pleaded not guilty, was released to pretrial services, and was ordered to surrender his passport.

“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,” said Donnelly. “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."

According to the charges, Doughtery 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, Donnelly said.

A review of Doughtery's account showed that client funds consisting of more than $1.2 million were deposited into the account between August 2023 and November 2024. By November 29, 2024, the balance was $5.35, prosecutors said.

Records reviewed during the course of the investigation revealed that Doughtery allegedly withdrew funds from the attorney account through cash withdrawals, transfers to another business checking account held by him, and to various credit card accounts opened by him, Donnelly said.

The investigation showed that Doughtery used his client’s funds to pay for various personal expenses between May 2024 and August 2024, including visits to gentleman’s clubs, nightclubs, and luxury hotels and restaurants.

He is represented by the Legal Aid Society.

Doughtery is due back in court on May 8. If convicted, he faces up to 5 to 15 years in prison.