Ashburn man arrested in Texas, accused of fraudulent loans

A flashy Ashburn businessman accused of using nonexistent life insurance policies to get millions of dollars in fraudulent bank loans has been arrested in Texas, authorities said.

Creditors have accused Osama M. El-Atari, 31, a restaurateur who owned four Original Steakhouse & Sports Theatre locations in Maryland and Virginia, of fraudulently obtaining at least $41.6 million in unpaid loans. He was arrested Jan. 30 by FBI agents in Austin, Texas, on suspicion of bank fraud and transferred to the federal detention center in Alexandria, the U.S. Marshal's office said.

El-Atari had disappeared in May, with one bank suspecting he might have fled to London and another believing his fleet of expensive sports cars was shipped to Jordan, where his parents are from. Creditors say much of his wealth was accumulated through a series of bank and personal loans, some totaling $12 million, using 20 different limited-liability corporations. Twelve banks, including BankAnnapolis, Wachovia Bank and Virginia Commerce Bank, have accused of El-Atari fraudulently borrowing money from them.