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Hello and welcome to JustAnswer BMW,
My name is XXXXX XXXXX it will be my pleasure to assist you today.
most commonly this engine will leak from the valve cover gasket or timing covers.
I would find a better mechanic, an oil leak should not defeat him. He obviously is not too worried about your business if his answer is that he can't fix it. Take it elsewhere, to a dealer even if need be, but you need to get this fixed soon based upon the smoke situation you have described.
I hope that is helpful, please let me know if you have further questions, or if I can clarify anything for you.
Best wishes to you and best of luck with your vehicle.
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thank you in advance.