Floral Park real estate attorney Terrance Dougherty pleads guilty to $1.7M embezzlement scheme

A Floral Park real estate attorney accused of embezzling more than $1.7 million from the escrow accounts of 30 clients pleaded guilty to 13 counts of second-degree grand larceny and one count of first-degree scheme to defraud on Monday in Mineola.

Nassau County prosecutors said Terrance Dougherty, of Oyster Bay, spent the money on adult entertainment, luxury hotels and restaurants. Dougherty, 39, is expected to receive a sentence of 3½ to 10½ years in prison when he appears before Nassau County Judge Christopher Hoefenkrieg on Nov. 6.

"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," Nassau County District Attorney Anne Donnelly said in a statement. "As he partied, dozens of his clients faced canceled closings and the realization that they had been ripped off and their money was gone."

Dougherty’s attorney, Karen E. Johnston, did not return a request for comment.

Donnelly said the defendant was a real estate attorney who practiced from an office on Jericho Turnpike in Floral Park, representing clients in the sale and purchase of property.

Dougherty worked with at least 30 clients between March 2021 and November 2024, prosecutors said. He maintained an attorney trust account, where he held client funds. Investigators learned that Dougherty withheld sale proceeds and down payment funds from clients, and many transactions were canceled because of the missing funds, or because closings occurred without Dougherty providing the necessary money.

In March 2021, prosecutors said, more than $1.7 million was deposited in Dougherty’s account. By Nov. 29, 2024, the balance was $5.35. Prosecutors said Dougherty withdrew funds from the attorney account through cash withdrawals, transfers to another business checking account and to credit cards.

Dougherty was reported to the Grievance Committee of the 10th Judicial District in August 2024. He stopped practicing from his Floral Park office that same month.

"Real estate attorneys hold their clients’ hopes in their hands and are trusted with huge sums of money to make their dreams reality," Donnelly said. "Doughtery crushed those dreams for a good time and now, with today’s plea, the party is over."