The Knife: Off Record – Episode 106 Summary

Release Date: May 1, 2025

Introduction

In Episode 106 of The Knife: A True Crime Podcast, hosts Hannah Smith and Patia Eaton delve into a complex fraud case intertwined with wrongful convictions and serial killings. This episode meticulously unpacks the rise and fall of Osama El Atari, his fraudulent activities, and his unexpected connection to a notorious serial killer, George Avila Torres. Through in-depth analysis and empathetic storytelling, Hannah and Patia reveal the intricate ripple effects of crime on individuals and communities.

Background of Osama El Atari

Osama El Atari emerged as a prominent restaurant owner in Ashburn, Virginia, during the early 2000s. Coming from a middle-class family with a history in the restaurant business, Osama quickly established himself as a successful entrepreneur. By 2008, his ostentatious lifestyle, marked by ownership of luxury cars including two Lamborghinis, two Ferraris, and a Rolls Royce Phantom, painted the picture of a man thriving in his ventures.

“He was pretty well known amongst his community and he owned multiple restaurants, including Lucky's, a sports Theater and Grill.” ([13:07])

Despite his apparent success, signs of financial instability began to surface as Osama took out substantial bank loans, sparking the onset of his fraudulent activities.

The Fraud Scheme

In December 2007, Osama secured a $5 million loan from United Bank, intending to expand his restaurant empire. However, the legitimacy of his loan was compromised when an assistant vice president at United Bank identified fraudulent life insurance policies used as collateral. Instead of reporting the discrepancy, this bank official collaborated with Osama, providing him with a fabricated accountant, Gordon Leipzig, to facilitate the loan. This collaboration resulted in a $150,000 kickback to the bank official and enabled Osama to secure additional loans totaling $17 million from various banks.

“This assistant vice president of the bank created a fake accountant, Gordon Leipzig... and was able to get Osama to give him a $150,000 kickback.” ([17:39])

Osama's extravagant spending, including purchasing a $4.5 million mansion and a rare NFL jersey for $25,000, raised further suspicions about the source of his wealth.

Collapse and Arrest

By early 2009, Osama had amassed loans totaling approximately $70 million from seven different banks. Unable to sustain the repayments, his fraudulent scheme unraveled. In May 2009, United Bank discovered the falsified life insurance documents, leading to a police investigation. Osama fled, leaving behind 18 large-screen televisions at his residence, a clue that baffled investigators.

After an eight-month disappearance, Osama was apprehended in January 2010 at a Ferrari dealership in Texas. In April 2010, he pled guilty to three counts of bank fraud and one count of money laundering, receiving a 12-year prison sentence.

“He pled guilty to three counts of bank fraud and one count of money laundering... sent to serve time at the Arlington County Jail.” ([21:46])

Connection to George Avila Torres

While serving his sentence, Osama became cellmates with George Avila Torres, a young Marine accused of multiple violent crimes. Recognizing an opportunity, Osama agreed to wear a wire to extract confessions from George. This collaboration proved pivotal in linking George to several heinous crimes.

George Avila Torres had been charged with the rape and kidnapping of multiple women in Arlington, Virginia, in early 2010. Additionally, he was implicated in the 2005 double murder of Lara Hobbs and Crystal Tobias in Illinois. Despite initial denials, jailhouse confessions and DNA evidence eventually led to his conviction.

“George Avila Torres... was convicted of rape, kidnapping, and the murders of Lara Hobbs and Crystal Tobias.” ([32:37])

Wrongful Conviction and Exoneration of Jerry Hobbs

A significant subplot of the episode highlights the wrongful conviction of Jerry Hobbs, father of one of George's victims, Lara Hobbs. Initially arrested and charged based on coerced confessions and circumstantial evidence, Jerry spent five years in prison before DNA evidence exonerated him.

“Jerry Hobbs was exonerated and eventually received a $7.75 million settlement.” ([41:55])

This miscarriage of justice underscores the profound impact of flawed investigations and the importance of accurate forensic methods.

Osama El Atari’s Downfall and Death

After assisting in the conviction of George Avila Torres, Osama faced numerous challenges upon his release in 2014. Unable to locate the substantial funds he had embezzled, he became the target of a violent scheme orchestrated by Donald Clay, who sought to seize Osama’s hidden money. In February 2016, Osama was brutally murdered in an abandoned industrial area in Capitol Heights, Maryland, by Clay and his accomplices. The lack of recovered funds and the mystery surrounding Osama's vast unaccounted assets remain unresolved.

“They ended up killing him. So all three men were arrested and charged.” ([53:24])

Conclusion

Episode 106 of The Knife: Off Record intricately weaves the narrative of financial fraud, wrongful conviction, and serial killings, demonstrating how interconnected and far-reaching the consequences of crime can be. Through comprehensive storytelling and detailed analysis, Hannah Smith and Patia Eaton shed light on the complexities of these cases, highlighting the importance of diligent investigative practices and the profound human cost of criminal activities.

Notable Quotes

• “It's easy to sort of make excuses when you want something so badly.” – Hannah Smith ([04:39])

• “He was a smooth talker, you know, gets people to trust him.” – Pasha Eaton ([31:28])

• “It doesn't matter if you think that they were a bad guy. You could look at Jerry Hobbs and say... he didn't murder his daughter or Crystal.” – Hannah Smith ([43:54])

Key Takeaways

• Interconnected Crimes: The episode illustrates how financial fraud can intersect with violent crimes, leading to a cascade of legal and personal repercussions.

• Wrongful Convictions: Highlighting Jerry Hobbs' exoneration emphasizes the critical need for accurate evidence and the potential for systemic failures within the justice system.

• Impact on Victims and Families: The wrongful conviction not only affected Jerry Hobbs but also added another layer of trauma to the families of the actual victims.

• The Human Element: Osama El Atari's story is a stark reminder of how individuals involved in crime can influence and impact other criminal activities, sometimes leading to unforeseen consequences.

Recommendations

Hannah and Pasha also share book recommendations related to their discussions, enriching the episode with additional resources for listeners interested in exploring similar true crime narratives.

• Book Recommendation: There Is No How: Three Women Uncovered America's Biggest Catfish by Ana Akbari
• Podcast Recommendation: Con Caitlyn's Baby – explores the story of Caitlin and fraudulent actions within the doula community.

Final Thoughts

The Knife: Off Record – Episode 106 masterfully navigates through a labyrinth of crimes, highlighting the intricate ties between financial deceit and violent offenses. The hosts' empathetic approach and thorough investigation provide listeners with a comprehensive understanding of the complexities involved in true crime cases.