Terrance Dougherty.

By Michael Mashburn From Daily Voice

A Long Island real estate attorney will spend up to a decade behind bars after admitting he stole more than $1.7 million from client escrow accounts and spent the money on strip clubs and luxury expenses.

Terrance Dougherty, 35, of Oyster Bay, was sentenced to 3½ to 10½ years in prison Wednesday, Nov. 19, in Nassau County Court. It followed his September guilty plea to 13 counts of grand larceny and one count of scheme to defraud.

Dougherty drained escrow accounts belonging to more than 30 clients between March 2021 and November 2024 while operating a real estate law practice on Jericho Turnpike in Floral Park, according to the Nassau County DA’s office.

The stolen funds included down payments and sale proceeds connected to pending home purchases and property closings.

Investigators reviewed the attorney trust account and found that $1,791,600 in client funds had been deposited during that period. By November 29, 2024, the account balance had dropped to just $5.35, prosecutors said.

Dougherty repeatedly withheld required payments, causing multiple real estate deals to collapse or forcing closings to proceed without the funds he was responsible for providing, prosecutors said.

He spent the stolen money on personal indulgences, including gentleman’s clubs, nightclubs, luxury hotels, restaurants, and credit card bills. Over a five-day stretch alone, he burned through nearly $200,000 at adult entertainment clubs in New York City and on Long Island.

In a statement following sentencing, Nassau County District Attorney Anne Donnelly said the theft left clients facing financial strain and jeopardized their attempts at buying or selling homes.

“Terrance Dougherty threw his life and career away for a good time on his clients’ dime. He was living it up while his clients faced having nowhere to live,” Donnelly said.

“Seeing their dreams of home ownership dashed, their financial stability jeopardized, and their sense of security forever tainted. Terrance Dougherty is a disgrace to the legal profession, and he will find no luxury accommodations over the next decade in state prison.”

Civil judgments totaling $1,791,600 were issued for 32 victims.

Dougherty stopped practicing at his Floral Park office in August 2024 and was reported to the Grievance Committee later that month. He surrendered to Nassau County investigators in April of this year.