MINEOLA, N.Y. — A Long Island real estate attorney was arraigned Wednesday on charges of grand larceny and fraud after allegedly embezzling more than $1.2 million from at least 20 clients and spending the money on personal expenses including adult entertainment venues, high-end hotels, and restaurants.
Terrance Dougherty, 36, of Oyster Bay, pleaded not guilty before Judge Veronica Renta-Irwin to two counts of grand larceny in the second degree, three counts in the third degree, and one count of first-degree scheme to defraud. He was released to pretrial services and ordered to surrender his passport. His next court appearance is scheduled for May 8.
Nassau County District Attorney Anne T. Donnelly said Dougherty stole from escrow accounts meant to safeguard funds related to real estate transactions. “This defendant shamelessly embezzled more than a million dollars from dozens of clients who trusted him to handle property sales and purchases,” said Donnelly in a statement.
According to prosecutors, Dougherty allegedly misappropriated down payments and sale proceeds held in an attorney trust account between March 2021 and November 2024. As a result, several property closings were delayed or cancelled when expected funds failed to materialize.
Financial records show that $1,202,600 was deposited into the trust account from August 2023 to November 2024. By November 29, 2024, the account balance had dropped to $5.35.
Luxury spending detailed in attorney embezzlement case
Prosecutors said Dougherty allegedly used client funds to pay for personal credit card bills, withdraw cash, and make transfers to other accounts he controlled. Between May and August 2024, he is accused of spending large sums at gentleman’s clubs, nightclubs, and luxury accommodations.
Dougherty ceased operations at his Jericho Turnpike law office in August 2024, shortly after being reported to the Grievance Committee for the 10th Judicial District. He surrendered to Nassau County District Attorney Detective Investigators on April 30.
If convicted on the top charge, Dougherty faces a maximum of 15 years in prison.