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THE BLUEPRINT:
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Foral Park attorney pleaded guilty to stealing $1.7 million from escrow accounts
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Embezzlement involved funds from 30 real estate clients
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Stolen money spent on nightclubs, adult entertainment and personal expenses
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Next court date set for Nov. 6
A Floral Park real estate attorney pleaded guilty in connection to a $1.7 million embezzlement scheme involving the escrow accounts of 30 clients, officials said Monday. The defendant spent the money on adult entertainment, nightclubs, personal expenses and to fund his law practice, officials said.
Terrance Dougherty, of Oyster Bay, pleaded guilty before Judge Christopher Hoefenkrieg to 13 counts of second-degree grand larceny and one count of first-degree scheme to defraud, Nassau County District Attorney Anne Donnelly said.
“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,” Donnelly said in a news release about the guilty plea.
“As he partied, dozens of his clients faced cancelled closings and the realization that they had been ripped off and their money was gone,” Donnelly said. “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.”
Officials said Dougherty maintained an attorney trust account to hold client funds from real estate transactions, including down payments and sale proceeds. Between March 2021 and November 2024, he represented at least 30 clients in real estate transactions, investigators said. He allegedly withheld sale proceeds or down payments, causing many deals to fall through or close without the required funds from him, according to officials.
Records show that between March 2021 and November 2024, more than $1.7 million in client funds was deposited into the account. By Nov. 29, the balance had dropped to just $5.35. Investigators say Dougherty withdrew funds from the attorney trust account through cash withdrawals, transfers to another business account he controlled and payments to various credit card accounts he had opened.
Dougherty was reported to the Grievance Committee for the 10th Judicial District in August of 2024. He ceased practicing from his Floral Park office that same month. He surrendered to Nassau County District Attorney detectives in April.
Dougherty is due back in court on Nov. 6, and could face between 3½ to 10½ years in prison.
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Adina Genn
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