Mineola, NY – A Floral Park real estate attorney pleaded guilty Thursday to embezzling more than $1.7 million from his clients’ escrow accounts and using the money on nightclubs, luxury hotels, and adult entertainment venues, prosecutors said.
Terrance Dougherty, 39, of Oyster Bay, entered guilty pleas before Judge Christopher Hoefenkrieg to 13 counts of second-degree grand larceny and one count of first-degree scheme to defraud. He is expected to receive a sentence of 3½ to 10½ years in prison when he appears in court on November 6.
Prosecutors said Dougherty ran his scheme from March 2021 through November 2024 while working as a real estate attorney on Jericho Turnpike. He stole down payments and sales proceeds from more than two dozen clients, often causing property closings to collapse.
Investigators found that $1.72 million was deposited into Dougherty’s attorney trust account during that time. By late November 2024, the balance had dropped to just $5.35. Authorities said he withdrew money through cash withdrawals, transfers, and credit card payments, then spent heavily on clubs, hotels, restaurants, and personal expenses.
“Without shame or remorse, Terrance Dougherty stole millions of dollars from his clients and blew it on gentleman’s clubs, luxury hotels, and other extravagant purchases,” Nassau County District Attorney Anne T. Donnelly said. “As he partied, dozens of his clients faced cancelled closings and the realization that they had been ripped off and their money was gone.”
The Grievance Committee for the 10th Judicial District received a complaint in August 2024, leading to an investigation. Dougherty closed his Floral Park office that month and surrendered to Nassau County investigators in April 2025.
Key Points
- Attorney Terrance Dougherty pleaded guilty to stealing $1.7 million from escrow accounts tied to real estate deals.
- Prosecutors said he spent client money at adult clubs, luxury hotels, and on personal expenses.
- He faces up to 10½ years in prison when sentenced in November.
The lawyer entrusted with dreams of homeownership now faces years behind bars for destroying them.
