A former Ashburn restaurateur will spend 12 years in federal prison for operating a fraud scheme that allowed him to steal more than $53 million from banks throughout the country.

Osama El-Atari

Osama M. El-Atari, 31, of Ashburn, appeared in federal court in Alexandria Aug. 27 to be sentenced for three counts of bank fraud and one count of money laundering in the case.

In the scheme, El-Atari defrauded several banks by taking out loans using fake life insurance policies as collateral. 

El-Atari used to own the Original Steakhouse and Sports Theatre in Ashburn as well as other restaurants in the region. He had a multimillion-dollar home in Ashburn, and exotic cars like Lamborghinis and Ferraris, which he bought using money obtained from his bank fraud.

He fled the United States in May 2009 and was apprehended in Texas in January.

At the Aug. 27 sentencing, U.S. Attorney Jonathan Fahey asked Judge Gerald Bruce Lee to impose the sentence recommended in the sentencing guidelines of 135 to 168 months in prison.

Fahey called El-Atari’s crimes a “sophisticated scheme” and the money he stole “truly a staggering amount.”

“This was fueled by greed,” Fahey said, pointing out how El-Atari used the money for fancy cars and a multimillion-dollar home instead of to help his businesses.

Fahey went on to describe that the victims of the scheme were not just the banks, but the employees who worked at the banks.

He mentioned a letter from one of the banks El-Atari defrauded more than $2 million from in Tennessee that described how its employees had to go without pay raises and how the bank was unable to offer loans to developing small businesses in the community because of the stolen money.

“The employees didn’t do anything wrong,” Fahey said.

El-Atari’s attorney, Bernard Grimm, asked the judge to sentence his client beneath the sentencing guidelines since El-Atari was someone who had been a contributing member to his community before the scheme.

Grimm described how El-Atari donated money to such organizations as the American Red Cross, St. Jude Children’s Research Hospital, the Fraternal Order of the Police and the Stone Bridge High School football team.

“That’s someone who’s given to the community,” Grimm said.

He also talked about how El-Atari had worked hard for many years to establish his restaurants before getting caught up in fraud.

“Greed just got a hold of him,” Grimm said.

He said El-Atari is doing what he can to pay back the banks he owes and to restore his family’s name in the community.

In fact, his brother Belal El-Atari, who owns the Buffalo Wing Factory franchise, is helping by committing $4.7 million toward Osama El-Atari’s restitution.

When given the chance to speak, Osama El-Atari told the judge that he was sorry.

“I’d like to say that I’m deeply remorseful for my actions,” he said, calling the scheme he undertook “stupid.”

El-Atari said that he should have been content with the half a million dollars per year that he was legitimately making before getting wrapped up in defrauding the banks.

He described himself as a former leader in his community that cared about everyone and said that he has learned his lesson.

“My respect for the law has shot through the roof,” El-Atari said, adding that he wants the chance to be seen as “a good person who made a bad choice.”

Before rendering sentence in the case, Lee acknowledged the good El-Atari had done in the community prior to the fraud scheme and how Belal El-Atari is still successful because he is adhering to the family values that Osama El-Atari did not adhere to.

Lee also told El-Atari that many people who got their start in the restaurant business because of him had written letters on his behalf.

“All of that certainly counts, but what you did was enormous,” Lee said.

In the end Lee sentenced El-Atari to 144 months on each of the bank fraud counts and 120 months on the money laundering count. The sentences will run at the same time, so El-Atari will spend a total of 12 years in federal prison.

Lee also ordered El-Atari to pay full restitution to the victims he defrauded.