A Dutchess County man has been accused of fraud for allegedly posing as a successful businessman who could teach people the secrets of making a lot of money by quickly buying and selling real estate.
Hossam Awadallah, of Pleasant Valley, was arrested on Nov. 1, released from custody on posting a $100,000 appearance bond, and told by a judge in White Plains federal court not to solicit new business.
Awadallah claimed he had made six-figure income from real estate commissions and was therefore qualified to teach people to do the same, according to an FBI arrest affidavit. Then he allegedly spent most of his investors’ funds on travel and vacations, luxury car rentals, psychic readings, life coaching lessons, food, entertainment, clothing and electronics.
From 2019 to mid-2024, he promoted a real estate training and advisory service, offering to mentor clients or help them manage their own real estate enterprises.
He drew attention by boasting about his wealth and success on social media accounts. He posted a photograph on Instagram of himself with a Lamborghini, for instance. He posted a screenshot of what appears to be a photo of a real estate contract with the words “Cash from buyer $76,087.26.”
Awadallah allegedly claimed he could provide good leads on properties that could be quickly purchased and then sold, yielding commissions. He promised to teach clients how to generate leads, market properties, and negotiate deals.
When the sales leads did not pan out, according to the FBI affidavit, Awadallah ignored his clients’ requests for more help.
Awadallah promised a California client a 40% return in one year, the affidavit states. The client’s parents invested $250,000 in a new real estate company that Awadallah would help manage. He closed one real estate deal that yielded $6,800 for his client.
The company was dissolved in 2022 and Awadallah agreed to return the $250,000, the affidavit states. But no payments have been made.
His bank accounts reveal that he took in about $442,250 during four-and-a-half years from 2018 to mid-2022. The receipts included $106,000 from real estate transactions and $386,250 from investors.
He spent about $91,000 on business expenses, according to the affidavit, and spent the rest on apparent personal expenses, such as $71,000 for travel and vacations and $48,000 to rent luxury cars.
“Awadallah failed to spend a material portion of his victims’ money as promised,” the affidavit states, “but instead spent that material portion on personal expenditures.”
U.S. Magistrate Judge Barbara C. Moses ordered Awadallah to stay with his parents in Hyde Park.
Defense attorney Ian Amelkin did not reply to an email that asked for Awadallah’s side of the story.
