Lawyer stole .2 million from escrow accounts for personal expenses, including strip clubs and luxury items, according to the District Attorney.
A 36-year-old attorney from Long Island specializing in real estate has been indicted on multiple charges related to the alleged misappropriation of over .2 million from client escrow accounts. The charges stem from claims that Terrance Dougherty, a resident of Oyster Bay, utilized these funds for personal expenditures, including payments for strip clubs, nightclubs, and extravagant lifestyle purchases that bore no connection to the legitimate real estate transactions of his clients.
The Nassau County District Attorney’s Office announced that Dougherty has pleaded not guilty to charges including grand larceny and conspiracy to commit fraud. According to officials, instead of fulfilling his fiduciary duty to protect the financial interests of his clients, Dougherty purportedly squandered their money on lavish nights out at various entertainment venues.
Prosecutors detailed that between August 2023 and November 2024, Dougherty deposited checks totaling ,202,600 into an account under his management. By November 29, 2024, this account contained a mere .35, indicating a dramatic depletion of funds. Reports suggest that the alleged spending frenzy occurred in a window from May through August 2024.
The implications of Dougherty’s alleged actions have been significant, reportedly affecting 20 clients who were engaged in real estate transactions at the time. Some of these transactions fell through as a direct result of his alleged deceit, leaving clients in precarious situations.
During proceedings, Dougherty was instructed to surrender his passport, and he is scheduled to return to court next Thursday. The Legal Aid Society is currently representing him in this matter, although they have not commented publicly regarding the case. If convicted, Dougherty could face up to 15 years in prison.
In light of these developments, Nassau County officials are urging any individuals who suspect they may have been defrauded by Dougherty to come forward and file a complaint. The case has drawn significant attention, highlighting the critical need for accountability within the legal profession, particularly in fiduciary roles that demand the utmost integrity and trust.
As the situation unfolds, stakeholders within the legal and real estate communities watch closely, reflecting an ongoing commitment to safeguarding client interests and upholding the principles of ethical practice.
