Posted on: May 02, 2025 10:20 PM

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Floral park real estate attorney charged with more than USD1 2 million embezzlement scheme

Nassau County District Attorney Anne T. Donnelly announced that a Floral Park real estate attorney was arraigned today on grand larceny charges for allegedly embezzling more than $1.2 million from the escrow accounts of 20 individuals between March 2021 and November 2024 and spending the funds on personal expenses, including adult entertainment clubs, nightclubs, other luxury lifestyle purchases, and to carry on his law practice unrelated to the victims’ real estate transactions.

Terrance Dougherty, 36, of Oyster Bay, was arraigned today before Judge Veronica Renta-Irwin on two counts of Grand Larceny in the Second Degree (a C felony); three counts of Grand Larceny in the Third Degree (a D felony); and one count of Scheme to Defraud in the First Degree (an E felony).

The defendant pleaded not guilty and was released to pretrial services and was ordered to surrender his passport. He is due back in court on May 8, 2025. If convicted, the defendant faces up to 5 to 15 years in prison.

“This defendant shamelessly embezzled more than a million dollars from dozens of clients 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 DA 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. It is a disgraceful abuse of trust between an attorney and his clients, and I will not tolerate it.” 

DA Donnelly said that, according to the charges, the defendant was a practicing real estate attorney with an office on Jericho Turnpike in Floral Park 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.

Between March 2021 and November 2024, the defendant worked with at least 20 clients on real estate transactions.

According to the investigation, the defendant withheld sale proceeds or down payment funds from at least 20 individuals.   

Many of the transactions were cancelled because of the missing funds or closings occurred without the defendant providing the necessary funds.

A review of the defendant’s account showed that client funds consisting of $1,202,600 were deposited into the account between August 2023 and November 2024. By November 29, 2024, the balance was $5.35.

Records reviewed during the course of the investigation revealed that the defendant 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.

The investigation showed that the defendant allegedly 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.

Dougherty was reported to the Grievance Committee for the 10th Judicial District on August 30, 2024.

The defendant ceased practicing from his Floral Park office in August 2024.

Dougherty surrendered to NCDA Detective Investigators on April 30, 2025.

From DA