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Floral Park real estate attorney, Terrance Dougherty, 36, of Oyster Bay, was arraigned on grand larceny charges for allegedly embezzling over $1.2 million from clients' escrow accounts between March 2021 and November 2024. According to Nassau County District Attorney Anne Donnelly, Dougherty withheld sale or down payments from at least 20 clients and kept the funds in his attorney trust account.

    An investigation revealed that Dougherty spent the embezzled money on personal expenses, including luxury hotels, nightclubs, restaurants, gentlemen's clubs, and other purchases. He also allegedly used some of the funds to support unrelated aspects of his law practice.

    Donnelly stated that Dougherty "shamelessly embezzled" from dozens of clients who trusted him to handle property sales and purchases. Instead of safeguarding their funds, he spent them on personal indulgences. The district attorney vowed to hold attorneys accountable for such abuses of trust.

    Dougherty faces two counts of second-degree grand larceny, three counts of third-degree grand larceny, and one count of scheme to defraud. If convicted, he could face between five and 15 years in prison. He pleaded not guilty through his representation by The Legal Aid Society.

    An investigation into Dougherty's attorney trust account found that client funds totaling $1,202,600 were deposited between August 2023 and November 2024. However, the account balance was only $5.35 by November 29, 2024, after Dougherty allegedly withdrew cash and transferred funds to his business accounts.

    Dougherty's law office on Jericho Turnpike in Floral Park stopped practicing in August 2024 after he was reported to the Grievance Committee for the 10th Judicial District. He surrendered to investigators on Wednesday. The DA's office is urging anyone who may have been a victim of Dougherty and has not yet filed a complaint to contact their Criminal Complaint Unit at 516-571-3505.