Va. businessman accused of fraud arrested in Texas; 31 year old Ferrari Challenge own | FerrariChat

Va. businessman accused of fraud arrested in Texas; 31 year old Ferrari Challenge own

Discussion in 'Mid-Atlantic Region - USA (PA, DE, MD, DC, VA)' started by Wolfgang5150, Feb 25, 2010.

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  1. Wolfgang5150

    Wolfgang5150 F1 Rookie

    Oct 31, 2003
    4,706
    Anyone know this guy????
    Uneal.
    Kevin S.

    Va. businessman accused of fraud arrested in Texas
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    Va. entrepreneur faces fraud charges, bankruptcy
    Va. entrepreneur faces fraud charges, bankruptcyWhen Virginia steakhouse owner Osama El-Atari disappeared last year, he left behind a $3.8 million McMansion, a few splashy sports cars and a bunch of banks that said he cheated them out of about $60 million.
    Authorities had thought El-Atari skipped the country to escape his debts until U.S. Marshals tracked down the 31-year-old in Texas. As federal prosecutors pursue bank fraud charges, with a hearing set for Wednesday, bankruptcy trustee Kevin McCarthy has the unenviable task of trying to satisfy El-Atari's many creditors.
    McCarthy does have some weapons at his disposal: he recently sold El-Atari's 2006 Ferrari 430 Challenger race car for $105,000, and he's hoping to get $425,000 or so for El-Atari's Porsche and Bentley.

    By MATTHEW BARAKAT; Associated Press Writer
    Published: 02/17/10 1:08 pm | Updated: 02/17/10 3:48 pm
    Comments (0)
    Recommend (0)McLEAN, Va. – A Lamborghini-driving steakhouse owner who disappeared after being accused of cheating banks out of tens of millions of dollars was arrested in Texas and returned to Virginia as federal prosecutors pursue fraud charges.

    Osama El-Atari is accused of fraudulently securing nearly $18 million in loans from one bank by offering up phony life insurance policies as collateral.

    El-Atari was thought to have fled the country in May, but court documents show he was arrested in the Austin, Texas, area on or before Feb. 1 and U.S. Marshals say he has been in custody in Alexandria since last week.

    The allegations spelled out in a federal court affidavit could be only the beginning against the flashy businessman, who owned several exotic sports cars and collected traffic tickets while driving them.

    "He was not a wallflower," said Allie Ash, who sold a Lamborghini to El-Atari through his dealership.

    In bankruptcy court, creditors spelled out more than $60 million claims against him, mostly from banks.

    United Bank, a regional bank with 113 branches in the region, reported a $17.6 million write-off for el-Atari's bad loans. For a relatively small bank like United the losses were significant, exceeding its most recent quarterly earnings of $17.4 million.

    In an affidavit, FBI Agent Mark Stanley stated that El-Atari took out three separate loans from United Bank between December 2007 and November 2008. He told the bank he was using the money for his businesses. He had owned four Original Steakhouse & Sports Theatre locations in Maryland and Virginia at the time.

    As collateral, El-Atari purported to offer up life insurance policies that he allegedly held through Lincoln Benefit Life Company, a division of Allstate. He allegedly wrote phony e-mails purporting to be from a Lincoln agent verifying the policies, using e-mail addresses that did not even correctly mimic those used by real Lincoln employees.

    Bank CFO Steven Wilson said he was aware of the arrest and appreciated the FBI's efforts, but would not comment on the case.

    Ash said he personally did not lose any money to El-Atari.

    "I think it's a fascinating story but fortunately we did not suffer financially," Ash said.

    El-Atari had been in trouble previously. In 2007, federal agents charged him with "conspiracy to manufacture badges," a misdemeanor case in which El-Atari was represented by famed defense lawyer Plato Cacheris. El-Atari pleaded guilty and paid a $500 fine. Court records indicate a former counterterrorism officer at the Defense Logistics Agency improperly supplied El-Atari with an official police badge.

    Cacheris did not return a call seeking comment.

    El-Atari's many creditors forced him into bankruptcy proceedings last year. The creditors' lawyer, David Tatge, was out of town and unavailable for comment, according to his office.

    One of those creditors was Celebrity Ventures, Inc., a Fort Lauderdale company that develops restaurants in partnership with former Pittsburgh Steelers star Jerome Bettis and other famous athletes.

    Celebrity Ventures' lawyer, Thomas Graner, estimated that El-Atari failed to pay several hundred thousand dollars in royalty fees.

    A manager at one of the steakhouses who declined to give his name said Osama El-Atari has nothing to do with the restaurants any more, but in bankruptcy court, creditors allege that El-Atari transferred ownership to his brother "in a secretive manner."

    A phone message for the brother, Belal El-Atari, was not immediately returned Wednesday evening.
     
  2. BillP00

    BillP00 Formula 3
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    Apr 23, 2007
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    Northern VA
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    Bill
  3. E60 M5

    E60 M5 Moderator
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    Jan 2, 2006
    8,166
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    Robert
    Wow, thought for sure he had left the country. His brother still runs the Wing Factory over here in Reston.
     
  4. g4titan

    g4titan Formula 3
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    Feb 6, 2010
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    Nico
    one word for these kinds of people... JOKERS... This dude was so high on himself every time I saw him. He took a local car tuning shop I go to for over a 100K. Totally sucks to be out that kind of cash when you trust someone will pay for all your hard work... he'll get what he deserves.
     
  5. ROULEUR

    ROULEUR Formula Junior

    Dec 15, 2008
    308
    Atlanta, Ga
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    Chris C
    I know him well, you are a little mis informed on the 100k thing. He did some bad, bad stuff though. He is locked up in Alexandria.
     
  6. DetailGuy

    DetailGuy Formula 3

    Oct 15, 2006
    1,001
    Ashburn, VA
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    Chris
    They caught him!?! F-ing awesome.
     
  7. g4titan

    g4titan Formula 3
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    Feb 6, 2010
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    #7 g4titan, Feb 25, 2010
    Last edited: Feb 25, 2010
    So you know the shop I'm referring to then? I just talked to the owner about it the other day and he was trying to get in line to get some of his $$ back... Then again it's none of my business and I wish everyone involved with this fiasco the best.
     
  8. muk_yan_jong

    muk_yan_jong Formula Junior

    Oct 11, 2008
    569
    Full Name:
    Brian McK
    Great claim to fame for a noob... Not sure that I'd ride on that horse while trying to resurrect any local good will.

    And BTW - The information *is* correct and is one of (at least) 4 or 5 other local shops that were hurt by Osama's games.

    Yep! All POS people end up getting their comeuppance. Some just take more time than others. There's no statute of limitations on having been a d*_ck to people.
     
  9. 355dreamer

    355dreamer F1 World Champ
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    Apr 3, 2006
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    L.C.
    105k for a 430 Challenge?
     
  10. muk_yan_jong

    muk_yan_jong Formula Junior

    Oct 11, 2008
    569
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    Brian McK
    #10 muk_yan_jong, Feb 26, 2010
    Last edited: Feb 26, 2010
    EXTENSIVE damage history and an early model. She had a rough life. "The Economy" probably didn't help either
     
  11. DetailGuy

    DetailGuy Formula 3

    Oct 15, 2006
    1,001
    Ashburn, VA
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    Chris
    I hope he spends some time in the "Federal Pounding in the Arse" prison
     
  12. ROULEUR

    ROULEUR Formula Junior

    Dec 15, 2008
    308
    Atlanta, Ga
    Full Name:
    Chris C

    There is more to the story, if in fact it is the same person I am thinking of. Not sticking up for Osama, he did some nasty stuff. He is in Alexandria waiting to go down. He is going to, as previosly referred, pound me in the arse prison for a LONG TIME!
     
  13. ROULEUR

    ROULEUR Formula Junior

    Dec 15, 2008
    308
    Atlanta, Ga
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    Chris C
     
  14. g4titan

    g4titan Formula 3
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    Feb 6, 2010
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    Nico
    I guess it's a shame that you would have any inkling of support for this POS... I would hope that there's some good judgement on your part and FoW not to support the shenanigans of anyone who made the Washington Post with fact based knowledge that he swindled millions of dollars from innocent people. I wouldn't touch this thread with a ten foot pole if I were a dealership... But then again I'm a simple person with a simple mind...
     
  15. ROULEUR

    ROULEUR Formula Junior

    Dec 15, 2008
    308
    Atlanta, Ga
    Full Name:
    Chris C
    Where is it that you draw the conclusion I have an "inkling" of support for him? I am showing a lack of support for some people claiming to be shortchanged by him that quite possibly were not, but I have shown no "support" for him. Please, I am asking, don't try to fabricate a story that is not there. I have a close, personal, friend that lives here locally that was taken for north of 400k cash! You will NOT see me sticking up for him.

    As a side note, please leave FOW out of this. I was not working here when I knew him or did business with him. He has been living on the lamb for almost a year before I even started here.
     
  16. Ricambi America

    Ricambi America F1 World Champ
    Sponsor Owner

    Mike (Ricambi South) might chime in. He knows him from the FoW days.
     
  17. g4titan

    g4titan Formula 3
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    Feb 6, 2010
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    Nico

    Are you kidding? Do you think I would waste my time and the readers of this board for some trumped up story? Give me a break man why would any rational person do that... I supposed the banks are trumping up their losses too...

    And don't associate you with FoW?? Is it not YOU that are promoting FoW service, meet ups, etc..?? Half of me wants to rethink my wallet spending spree with you people given the lack of common sense here... I may have to see what competizione has to offer...
     
  18. ROULEUR

    ROULEUR Formula Junior

    Dec 15, 2008
    308
    Atlanta, Ga
    Full Name:
    Chris C
    I am speaking of you fabricating a story of me supporting Osama. Yes, I have been working to restore the stores reputation, what could that possibly have to do with our discussion of Osama El Atari??? Am I not allowed to post my opinion of a situation that I have first hand knowledge of and you have a story from a person that was supposedly involved? I am curious to know what shop got taken, to make sure that it is the same as the one I am thinking of. If it is not, then I owe you an apology, if it is then I am speaking first hand and you are speaking from word of mouth.
     
  19. toggie

    toggie F1 World Champ
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    Nov 30, 2003
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    #19 toggie, Feb 26, 2010
    Last edited by a moderator: Sep 7, 2017
  20. ROULEUR

    ROULEUR Formula Junior

    Dec 15, 2008
    308
    Atlanta, Ga
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    Chris C
    He had one of just about everything at one point in time or another.
     
  21. ZINGARA 250GTL

    ZINGARA 250GTL F1 World Champ
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    Jun 21, 2002
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    Ken
    I am wondering if anyone knows anything about the trustee, Kevin McCarthy. I have a personal interest. PM if you do, please. Thanks.
     
  22. CornersWell

    CornersWell F1 Rookie

    Nov 24, 2004
    4,896
    Everyone is presumed innocent until proven guilty.

    However, I'm REALLY glad I didn't go into business with this guy. I was referred to him over and over again. Without going into details, I've been nearly conned by other FoW customers in the past, and I just have no interest in partnering up with people any longer that I don't know. I've been named in Federal lawsuits that emanated from Challenge racers. Paul Frame, Leo Hindery, Richard Millman, Phil Bennett...just to name a few. My advice has always been: stick to your knitting and don't mix business with pleasure. A LOT of monkey business has originated in "moneyed" exotic owners. Fertile hunting grounds, I suppose.

    This guy just "arrived" with a lot of money and played on a big stage. I've been around long enough to know you don't just show up. The guy had red flags all around him. Doesn't mean he's not a likable guy, but it just pays to "trust, but verify". I can't BELIEVE these banks were so gullible.

    CW
     
  23. Rafienva

    Rafienva Formula Junior

    Oct 18, 2004
    485
    North Palm Beach, FL
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    Ralph(Rafi) Cestero
    The Osama I knew was an 18 year old kid back in the mid 90's who had a passion for fast cars and loved Ferrari's as anyone here on this board. He was a hard working young man who got involved in the father's business and helped make it succesfull. Osama and Belal would hang around the FOW showroom and salivate over the beautiful cars from time to time. He would bring his AMG Mercedes to get it detailed by Bobbie Scott and others. He would bring food to the guys in the shop sometimes. I had offered to take him out for a ride several times and his words to me, I would love to, but I want to wait until I am ready to buy one. This went on for many years. His business blossomed , he got greedy and the rest is history. He is a good human being that made a huge mistake and will pay for what he did for a very long time.
     
  24. Roadney

    Roadney Karting

    ditto the "Federal Pounding in the Arse" prison
     
  25. toggie

    toggie F1 World Champ
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    Nov 30, 2003
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    Latest update: Osama El-Atari pleads guilty to fraud.

    http://www.washingtonpost.com/wp-dyn/content/article/2010/04/29/AR2010042904797.html

    Va. businessman pleads guilty to fraud in obtaining $53 million in loans

    By Derek Kravitz
    Washington Post Staff Writer
    Friday, April 30, 2010

    An Ashburn businessman who used nonexistent life insurance policies to get tens of millions of dollars in fraudulent bank loans pleaded guilty Thursday in federal court.

    Osama M. El-Atari, 31, owned four Original Steakhouse and Sports Theatre locations in Maryland and Virginia before, authorities said, he used the life insurance policies to obtain more than $53 million in loans from banks in those states as well as in Ohio and Tennessee. He pleaded guilty to three counts of bank fraud and one count of money laundering in U.S. District courts in Alexandria and Ohio.

    El-Atari's sentencing is July 30. He faces a maximum sentence of 30 years on each of the bank fraud counts and 10 years on the money laundering count.

    Creditors said much of El-Atari's wealth was accumulated through the loans, some totaling $12 million. El-Atari used a number of fake domain names and e-mail accounts to convince bank managers that he had real collateral. El-Atari used some of the proceeds to buy exotic cars, including Lamborghinis and Ferraris, and a $3.8 million house in Loudoun County.

    Atari disappeared in May and fled the United States, authorities said. He was arrested Jan. 30 in Austin.

    A vice president at one of the swindled banks, United Bank, has also been charged in connection with the fraud. Sissaye Gezachew, 32, of Springfield was arrested Tuesday on a federal charge of conspiracy to commit bank fraud. Authorities said he accepted about $150,000 in bribes from El-Atari for signing off on $17.6 million in loans and creating fake financial documents.
     

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