Nassau Real Estate Attorney Pleads Guilty to $1.7 Million Embezzlement Scheme: DA

MINEOLA, NY — An Oyster Bay man pleaded guilty to grand larceny and other charges after embezzling more than $1.7 million from the escrow accounts of 30 clients, prosecutors said.

Terrance Dougherty, 39, spent the money from the escrow accounts on adult entertainment, nightclubs, other personal expenses and to carry on his law practice in Floral Park, Nassau County District Attorney Anne Donnelly announced.

Terrance Dougherty, 39, pleaded guilty to 13 counts of second-degree grand larceny and one count of first-degree scheme to defraud, prosecutors said.

He is due back in court on November 6 and is expected to receive a sentence of 3-1/2 to 10-1/2 years in prison, Donnelly said.

Donnelly said that Dougherty was a practicing real estate attorney with an office on Jericho Turnpike, representing clients in the sale and purchase of property.

Dougherty 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.

Between March 2021 and November 2024, he worked with at least 30 clients on real estate transactions, prosecutors said.

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 Dougherty providing the necessary funds, the DA's office said.

A review of his account showed that client funds consisting of $1,721,600 were deposited into the account between March 2021 and November 2024, the DA said. By November 29, 2024, the balance was $5.35, Donnelly said.

The defendant 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, prosecutors said.

“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 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 reality. Doughtery crushed those dreams for a good time and now, with today’s plea, the party is over.”

Dougherty is represented by attorney Karen Johnston, who Patch attempted to reach for comment.