Olivia was almost caught when she was talking over the phone to Ned (Wally Kurth). She told him she didn’t know how much longer she could keep up with the lie that Leo died. She firmly believes that she did the right thing by telling him Leo died, but she worries he’ll figure out the truth and launch a search for his missing son. She has a great reason to worry, too. Julian was heartbroken by the ‘death’ of Leo- and if he discovered it was fabricated one can assume he’d immediately search for his boy, so he could make up for lost time.
On the day of Sonny’s (Maurice Benard) shooting, Julian saw Olivia on the pier with her grandson. He stopped her to chit chat. She told him they couldn’t believe a word each other says because they both have a history of lying. At first, it looked like he may have suspected that his son was alive, but then he eased off. It isn’t clear if he suspected Leo is alive, or if he just thought that Olivia was hiding a valuable piece of information with him.
At some point, the information will come out. Olivia cannot believe that she can hide something this big forever from Julian. Her reasons for hiding her sweet baby boy from Julian are valid; however, it was STILL wrong to hide a child from their father. When he discovers the truth, he will be pretty upset with her.
Olivia was on the fence about revealing that Leo is alive. She obviously feels bad about lying to Julian, but at the same time she wanted to protect her boy from the mob boss life. Eventually, when the news comes to the surface, Olivia will have quite a mess to deal with, and Julian is not known for being the most forgiving man.
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