MINEOLA, N.Y. — Nassau County District Attorney Anne T. Donnelly announced the arraignment of Terrance Dougherty, a 36-year-old real estate attorney from Oyster Bay, on grand larceny charges for allegedly embezzling over $1.2 million from 20 clients between March 2021 and November 2024. Dougherty is accused of using the stolen funds to cover personal expenses, including spending at adult entertainment clubs, nightclubs, luxury hotels, and restaurants, as well as for maintaining his law practice.
Dougherty was arraigned before Judge Veronica Renta-Irwin on two counts of Grand Larceny in the Second Degree (a C felony), three counts of Grand Larceny in the Third Degree (a D felony), and one count of Scheme to Defraud in the First Degree (an E felony). He pleaded not guilty and was released on pretrial services with instructions to surrender his passport. He is scheduled to return to court on May 8, 2025. If convicted, Dougherty faces a potential prison sentence of 5 to 15 years.
DA Donnelly expressed outrage over the crime, stating, “This defendant shamelessly embezzled over a million dollars from clients who trusted him to handle their real estate transactions. Instead of safeguarding his clients’ funds, he allegedly blew the money on high-roller nights out. This is an abuse of trust that I will not tolerate.”
According to the investigation, Dougherty was a practicing real estate attorney based in Floral Park, operating out of an office on Jericho Turnpike. He maintained an Attorney Trust Account where client funds—such as down payments and sale proceeds—were deposited. Between March 2021 and November 2024, Dougherty worked with at least 20 clients on various real estate transactions.
Investigators found that between August 2023 and November 2024, Dougherty deposited $1,202,600 into his account. However, by November 29, 2024, the account’s balance had dwindled to just $5.35. Records show Dougherty allegedly withdrew funds from the account to cover personal expenses, including visits to high-end gentlemen’s clubs, nightclubs, and other luxury venues.
Several transactions fell through due to missing funds, causing clients to lose out on their property deals. The defendant ceased practicing law in August 2024 and was reported to the Grievance Committee for the 10th Judicial District.
Dougherty surrendered to Nassau County District Attorney (NCDA) Detective Investigators on April 30, 2025.
Anyone who believes they may have been a victim of Dougherty’s embezzlement is urged to contact the Criminal Complaint Unit at (516) 571-3505.
The case is being prosecuted by Senior Investigative Counsel Jennifer Contreras from the Major Financial Frauds Bureau, under the supervision of Bureau Chief Maureen McCormack and Executive Assistant District Attorney Rick Whelan. Dougherty is represented by The Legal Aid Society.
The charges against Dougherty are merely accusations, and he is presumed innocent until proven guilty.
