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==Early life and background== ==Early life and background==
Weiss grew up in ]; he attended a ]-language ] and, as a child, Weiss delivered fruit for his father's fruit stand. As a young man, he did construction work, and purchased Windsor Plumbing Supply in 1974, at the age of 20. The firm was profitable for the 1970s and for most of the 1980s, but declared bankruptcy in the late 1980s.<ref name="Times-2000">{{cite news |first=William K. |last= Rashbaum|title= 845 Years in Prison, If the Authorities Can Catch Him; F.B.I. Says Fugitive Has a Flair For Fraud and Hiding Stolen Cash|url=https://www.nytimes.com/2000/03/09/nyregion/845-years-prison-if-authorities-can-catch-him-fbi-says-fugitive-has-flair-for.html?scp=3&sq=sholam%20weiss&st=cse|work=The New York Times|date= 9 March 2000|accessdate=6 July 2009}}</ref> Weiss grew up in ]; he attended a ]-language ] and, as a child, Weiss delivered fruit for his father's fruit stand. As a young man, he did construction work, and purchased Windsor Plumbing Supply in 1974, at the age of 20. The firm was profitable for the 1970s and for most of the 1980s, but declared bankruptcy in the late 1980s.<ref name="Times-2000">{{cite news|title=845 Years}}</ref>


In 1994, Weiss was indicted on ] charges and found guilty, for which he served eight months in prison, in a case not connected to National Heritage. Weiss had falsely claimed that more than $1 million worth of bathtubs had been damaged in a 1986 warehouse firehouse.<ref name="Times-2000" /> In 1994, Weiss was indicted on ] charges and found guilty, for which he served eight months in prison, in a case not connected to National Heritage. Weiss had falsely claimed that more than $1 million worth of bathtubs had been damaged in a 1986 warehouse firehouse.<ref name="Times-2000" />
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{{main|National Heritage Life Insurance Company}} {{main|National Heritage Life Insurance Company}}


In a scheme that the '']'' described as "a series of numbingly complex mortgage and stock frauds," Weiss and others siphoned $450 million from the National Heritage Life Insurance Company. The majority of the insurer's policyholders were elderly Florida residents, and the case attracted little attention outside Florida, but federal authorities "said it ranked as the largest insurance company failure caused by criminal acts in United States history."<ref name="Times-2000" /><ref name="Anatomy 100">{{cite web |url=http://www.bestreview.com/media/pdfs/2000_septlh.pdf |author=Whitney, Sally |work=Best's Review |date=September 2000 |title=Anatomy of a Failure |page=100 |archive-url=https://web.archive.org/web/20060323065220/http://www.bestreview.com/media/pdfs/2000_septlh.pdf |archive-date=March 23, 2006 |url-status=dead |access-date=February 14, 2018}}</ref> In a scheme that the '']'' described as "a series of numbingly complex mortgage and stock frauds," it's owners siphoned $450 million from the National Heritage Life Insurance Company. The majority of the insurer's policyholders were elderly Florida residents, and the case attracted little attention outside Florida, but federal authorities "said it ranked as the largest insurance company failure caused by criminal acts in United States history."<ref name="Times-2000" /><ref name="Anatomy 100">{{cite web |url=http://www.bestreview.com/media/pdfs/2000_septlh.pdf |author=Whitney, Sally |work=Best's Review |date=September 2000 |title=Anatomy of a Failure |page=100 |archive-url=https://web.archive.org/web/20060323065220/http://www.bestreview.com/media/pdfs/2000_septlh.pdf |archive-date=March 23, 2006 |url-status=dead |access-date=February 14, 2018}}</ref>


Prosecutors charged that the insurer was taken over by fraudsters. "Using a variation on a simple check-kiting scheme, they bought the company with a check and then, once they had taken over, simply lent themselves the money to cover the purchase price." After taking control in 1993, Weiss and others bought worthless stocks and mortgages in a series of deals that drained the insurer of hundreds of millions of dollars. Much of the money vanished., and millions went into accounts controlled by Weiss.<ref name="Times-2000" /> Prosecutors charged that the insurer was taken over by fraudsters. "Using a variation on a simple check-kiting scheme, they bought the company with a check and then, once they had taken over, simply lent themselves the money to cover the purchase price."


The heavy involvement of attorneys, who comprised one-quarter of the persons eventually convicted, helped the conspirators keep the fraud secret.<ref name="Anatomy 100" /> The heavy involvement of attorneys, who comprised one-quarter of the persons eventually convicted, helped the conspirators keep the fraud secret.<ref name="Anatomy 100" />
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==Trial, sentencing and flight== ==Trial, sentencing and flight==


Weiss rejected a government offer of a plea deal in which he would have served five years in prison, and chose to go to trial.<ref name=":2" /> Weiss fled the country while the jury was deliberating. In November 1999, he was found guilty ] at the trial, which was held in the federal court in Orlando, Florida, and in February 2000 he was sentenced to 845 years in prison, three years of supervised release, a fine of $123.4 million and ordered to pay $125 million in restitution. Asset forfeitures of $57 million were also ordered.<ref name='doj'/><ref name="Anatomy 100" /><ref name=":1" /> The restitution was paid.<ref name=":0" /> In addition to Weiss, 15 other defendants pleaded guilty or were convicted in the fraud case by the time he was sentenced, and several were serving long prison terms.<ref name="Times-2000" /> Weiss rejected a government offer of a plea deal in which he would have served five years in prison, and chose to go to trial.<ref name=":2" /> Weiss fled the country while the jury was deliberating. In November 1999, he was found guilty ] at the trial, which was held in the federal court in Orlando, Florida, and in February 2000 he was sentenced to 845 years in prison, three years of supervised release, a fine of $123.4 million and ordered to pay $125 million in restitution. Asset forfeitures of $57 million were also ordered.<ref name='doj'/><ref name="Anatomy 100" /><ref name=":1" /> In 2011 the court ordered that the restitution was paid in full.<ref name=":0" /> In addition to Weiss, 15 other defendants pleaded guilty or were convicted in the fraud case by the time he was sentenced, and several were serving long prison terms.<ref name="Times-2000" />


As a fugitive, Weiss traveled to Israel, Belgium, Brazil, Austria and the United Kingdom. Weiss was raised a ] but had long stopped being observant at the time of his flight.<ref name=":3">{{cite news|last=Rashbaum|first=William K.|date=26 October 2000|title=Fugitive Arrested in Austria After a Year on the Run|newspaper=The New York Times|url=https://www.nytimes.com/2000/10/26/nyregion/fugitive-arrested-in-austria-after-a-year-on-the-run.html}}</ref> Authorities said Weiss shaved his beard and lost weight to avoid detection<ref name=":3" />, and lived in "high style" as a fugitive, "dining at expensive restaurants, gambling in casinos and hiring prostitutes as he hopped from country to country." He moved often while on the run. The ''New York Times'' reported that he used "prepaid cell phones, mounds of cash and a series of false identities to elude authorities in South America, Europe and Israel, often by using his Brazilian girlfriend as a front."<ref name=":3" /> As a fugitive, Weiss traveled to Israel, Belgium, Brazil, Austria and the United Kingdom. Weiss was raised a ]. Authorities said Weiss shaved his beard and lost weight to avoid detection<ref name=":3">{{cite news|last=Rashbaum|first=William K.|date=26 October 2000|title=Fugitive Arrested in Austria After a Year on the Run|newspaper=The New York Times|url=https://www.nytimes.com/2000/10/26/nyregion/fugitive-arrested-in-austria-after-a-year-on-the-run.html}}</ref>, and lived in "high style" as a fugitive, "dining at expensive restaurants, gambling in casinos and hiring prostitutes as he hopped from country to country." He moved often while on the run. The ''New York Times'' reported that he used "prepaid cell phones, mounds of cash and a series of false identities to elude authorities in South America, Europe and Israel.


After a year as a fugitive, being pursued by the ], the ], and others, he was apprehended in ], Austria and ] to the United States in 2002.<ref>{{Cite web|author=Susan Clary|newspaper=Orlando Sentinel|title=Extravagant Fugitive's Run Comes to An End|url=https://www.orlandosentinel.com/news/os-xpm-2000-10-26-0010260287-story.html|date=October 26, 2000}}</ref><ref name=":2">{{cite web|author=Chris McKenna|url=https://www.recordonline.com/article/20020701/NEWS/307019996 |title=Convicted thief paid for religious school|location=Middletown, NY|newspaper=Times Herald-Record|date=July 1, 2002}}</ref> After a year as a fugitive, being pursued by the ], the ], and others, he was apprehended in ], Austria and ] to the United States in 2002.<ref>{{Cite web|author=Susan Clary|newspaper=Orlando Sentinel|title=Extravagant Fugitive's Run Comes to An End|url=https://www.orlandosentinel.com/news/os-xpm-2000-10-26-0010260287-story.html|date=October 26, 2000}}</ref><ref name=":2">{{cite web|author=Chris McKenna|url=https://www.recordonline.com/article/20020701/NEWS/307019996 |title=Convicted thief paid for religious school|location=Middletown, NY|newspaper=Times Herald-Record|date=July 1, 2002}}</ref>


At the time of his extradition, Weiss was believed by the FBI to have control of $250 million stolen from National Life.<ref name="Bests Dec2000" /> Another estimate was that he controlled half of the $450 million he helped steal.<ref name=":3" /> At the time of his extradition, Weiss was believed by the FBI to have control of $250 million stolen from National Life.<ref name="Bests Dec2000" />


== Sentence commuted == == Sentence commuted ==
Weiss' sentence was controversial due to its length, which was far in excess of the 150-year sentence imposed on ]. The ] included Weiss with other clemency petitions it submitted to the ]. Rep. ] asserted that the sentence was retaliation for rejecting a five-year plea deal.<ref name=":1">{{Cite news|last=Yaffe-Bellany|first=David|date=2021-01-20|title=Fraudster Returns Home After Trump Commutes 835-Year Term|language=en|work=Bloomberg.com|url=https://www.bloomberg.com/news/articles/2021-01-20/trump-commutes-835-year-white-collar-sentence-for-sholam-weiss|url-status=live|access-date=2021-01-23}}</ref><ref name=":0" /> Weiss hired lobbyist ] to press for commutation, and other supporters included former ] ], former ] ] and ] professor ]. The commutation campaign was spearheaded by his nephew.<ref name=":1" /> Weiss' sentence was controversial due to its length, which was far in excess of the 150-year sentence imposed on ]. The ] included Weiss with other clemency petitions it submitted to the ]. Rep. ] asserted that the sentence was retaliation for rejecting a five-year plea deal.<ref name=":1">{{Cite news|last=Yaffe-Bellany|first=David|date=2021-01-20|title=Fraudster Returns Home After Trump Commutes 835-Year Term|language=en|work=Bloomberg.com|url=https://www.bloomberg.com/news/articles/2021-01-20/trump-commutes-835-year-white-collar-sentence-for-sholam-weiss|url-status=live|access-date=2021-01-23}}</ref><ref name=":0" /> Weiss hired lobbyist ] to press for commutation, and other supporters included former ] ], former ] ] and ] professor ]. The commutation campaign was spearheaded by his nephew.<ref name=":1" />


On January 19, 2021, President Donald Trump commuted Weiss's sentence, in one of the 70 pardons and 73 sentence commutations issued on his full last day in office. A White House statement said that Weiss "has already served over 18 years and paid substantial restitution. He is 66 years old and suffers from chronic health conditions,” <ref>{{Cite web|title=Statement from the Press Secretary Regarding Executive Grants of Clemency – The White House|url=https://trumpwhitehouse.archives.gov/briefings-statements/statement-press-secretary-regarding-executive-grants-clemency-012021/|access-date=2021-01-27|website=trumpwhitehouse.archives.gov}}</ref><ref>{{cite news |last1=Schulte |first1=Fred |title=Trump’s pardons included health execs behind massive Medicare frauds |url=https://chicago.suntimes.com/politics/2021/1/26/22249570/trumps-pardons-medicare-fraud-esformes-melgen |access-date=27 January 2021 |work=Chicago Sun-Times |agency=Kaiser Health News |date=26 January 2021 |language=en}}</ref><ref name=":0">{{Cite web|last=McKenna|first=Chris|title=Trump commutes prison sentence of Monsey man serving 835 years for 1999 fraud conviction|url=https://www.recordonline.com/story/news/local/2021/01/20/trump-commutes-monsey-sholam-weiss/4215267001/|access-date=2021-01-23|website=Times Herald-Record|language=en-US}}</ref> In an editorial,'']'' criticized the commutation, noting that Weiss had "skipped town before his verdict, forcing federal officers to track him across continents," and opined that "of the inmates in federal prison, he is among the least deserving."<ref>{{Cite news|last=|first=|date=2021-01-20|title=Opinion {{!}} On his final day, Trump demeaned the presidency one more time|language=en-US|work=Washington Post|url=https://www.washingtonpost.com/opinions/on-his-final-day-trump-demeaned-the-presidency-one-more-time/2021/01/20/747ddfa0-5b45-11eb-b8bd-ee36b1cd18bf_story.html|url-status=live|access-date=2021-01-24|issn=0190-8286}}</ref> On January 19, 2021, President Donald Trump commuted Weiss's sentence, in one of the 70 pardons and 73 sentence commutations issued on his full last day in office. A White House statement said that Weiss "has already served over 18 years and paid substantial restitution. He is 66 years old and suffers from chronic health conditions,” <ref>{{Cite web|title=Statement from the Press Secretary Regarding Executive Grants of Clemency – The White House|url=https://trumpwhitehouse.archives.gov/briefings-statements/statement-press-secretary-regarding-executive-grants-clemency-012021/|access-date=2021-01-27|website=trumpwhitehouse.archives.gov}}</ref><ref>{{cite news |last1=Schulte |first1=Fred |title=Trump’s pardons included health execs behind massive Medicare frauds |url=https://chicago.suntimes.com/politics/2021/1/26/22249570/trumps-pardons-medicare-fraud-esformes-melgen |access-date=27 January 2021 |work=Chicago Sun-Times |agency=Kaiser Health News |date=26 January 2021 |language=en}}</ref><ref name=":0">{{Cite web|last=McKenna|first=Chris|title=Trump commutes prison sentence of Monsey man serving 835 years for 1999 fraud conviction|url=https://www.recordonline.com/story/news/local/2021/01/20/trump-commutes-monsey-sholam-weiss/4215267001/|access-date=2021-01-23|website=Times Herald-Record|language=en-US}}</ref>


==See also== ==See also==

Revision as of 15:59, 28 January 2021

American fraudster
Sholam Weiss
Born (1954-04-01) April 1, 1954 (age 70)
Brooklyn, New York, U.S.
StatusReleased via presidential sentence commutation, January 19, 2021
OccupationFormer business consultant
Criminal charge78 counts of racketeering, wire fraud and money laundering
Penalty835 years imprisonment (reduced from 845 years in 2009), three years supervised release, $123.4 million fine, $125 million restitution, $57 million forfeitures

Sholam Weiss (born April 1, 1954) is an American former businessman and convicted fraudster.

In 2000, Weiss was sentenced to 845 years in prison for racketeering, wire fraud, money laundering, and other charges in connection to the collapse of the National Heritage Life Insurance Company. He and other defendants engaged in an immense scheme that siphoned off $450 million from the company, resulting in what was believed to be the largest insurance company failure ever caused by criminal acts.

His sentence was believed to be the longest prison term ever imposed in a U.S. federal court. and the longest ever for white-collar crime. Weiss fled the country during jury deliberations in October 1999, and was extradited from Austria in 2002. His sentence was commuted by President Donald Trump on January 19, 2021.

Early life and background

Weiss grew up in Borough Park, New York; he attended a Yiddish-language yeshiva and, as a child, Weiss delivered fruit for his father's fruit stand. As a young man, he did construction work, and purchased Windsor Plumbing Supply in 1974, at the age of 20. The firm was profitable for the 1970s and for most of the 1980s, but declared bankruptcy in the late 1980s.

In 1994, Weiss was indicted on mail fraud charges and found guilty, for which he served eight months in prison, in a case not connected to National Heritage. Weiss had falsely claimed that more than $1 million worth of bathtubs had been damaged in a 1986 warehouse firehouse.

National Heritage Life Insurance Company fraud

Main article: National Heritage Life Insurance Company

In a scheme that the New York Times described as "a series of numbingly complex mortgage and stock frauds," it's owners siphoned $450 million from the National Heritage Life Insurance Company. The majority of the insurer's policyholders were elderly Florida residents, and the case attracted little attention outside Florida, but federal authorities "said it ranked as the largest insurance company failure caused by criminal acts in United States history."

Prosecutors charged that the insurer was taken over by fraudsters. "Using a variation on a simple check-kiting scheme, they bought the company with a check and then, once they had taken over, simply lent themselves the money to cover the purchase price."

The heavy involvement of attorneys, who comprised one-quarter of the persons eventually convicted, helped the conspirators keep the fraud secret.

National Life, which was liquidated in 1995, had about 35,000 customers, of whom about 10,500 lived in Florida. Many lost their life savings as a result of the fraud, though various guaranty funds repaid policy and annuity holders about $420 million.

Trial, sentencing and flight

Weiss rejected a government offer of a plea deal in which he would have served five years in prison, and chose to go to trial. Weiss fled the country while the jury was deliberating. In November 1999, he was found guilty in absentia at the trial, which was held in the federal court in Orlando, Florida, and in February 2000 he was sentenced to 845 years in prison, three years of supervised release, a fine of $123.4 million and ordered to pay $125 million in restitution. Asset forfeitures of $57 million were also ordered. In 2011 the court ordered that the restitution was paid in full. In addition to Weiss, 15 other defendants pleaded guilty or were convicted in the fraud case by the time he was sentenced, and several were serving long prison terms.

As a fugitive, Weiss traveled to Israel, Belgium, Brazil, Austria and the United Kingdom. Weiss was raised a Hasidic Jew. Authorities said Weiss shaved his beard and lost weight to avoid detection, and lived in "high style" as a fugitive, "dining at expensive restaurants, gambling in casinos and hiring prostitutes as he hopped from country to country." He moved often while on the run. The New York Times reported that he used "prepaid cell phones, mounds of cash and a series of false identities to elude authorities in South America, Europe and Israel.

After a year as a fugitive, being pursued by the FBI, the Brazilian Federal Police, and others, he was apprehended in Vienna, Austria and extradited to the United States in 2002.

At the time of his extradition, Weiss was believed by the FBI to have control of $250 million stolen from National Life.

Sentence commuted

Weiss' sentence was controversial due to its length, which was far in excess of the 150-year sentence imposed on Bernard Madoff. The National Association of Criminal Defense Lawyers included Weiss with other clemency petitions it submitted to the White House. Rep. Sean Patrick Maloney asserted that the sentence was retaliation for rejecting a five-year plea deal. Weiss hired lobbyist Brett Tolman to press for commutation, and other supporters included former U.S. Attorney General Edwin Meese, former U.S. Solicitor General Seth Waxman and Harvard Law School professor Alan Dershowitz. The commutation campaign was spearheaded by his nephew.

On January 19, 2021, President Donald Trump commuted Weiss's sentence, in one of the 70 pardons and 73 sentence commutations issued on his full last day in office. A White House statement said that Weiss "has already served over 18 years and paid substantial restitution. He is 66 years old and suffers from chronic health conditions,”

See also

References

  1. ^ "Commutations granted by President Donald Trump (2017 - 2021)". www.justice.gov. 20 December 2017.
  2. Writer, Susan Clary, Sentinel Staff. "INSURANCE THIEF BACK IN FLORIDA". OrlandoSentinel.com. Retrieved 2021-01-17.{{cite web}}: CS1 maint: multiple names: authors list (link)
  3. ^ "845 Years".
  4. ^ Yaffe-Bellany, David (2021-01-20). "Fraudster Returns Home After Trump Commutes 835-Year Term". Bloomberg.com. Retrieved 2021-01-23.{{cite news}}: CS1 maint: url-status (link)
  5. ^ Whitney, Sally (September 2000). "Anatomy of a Failure" (PDF). Best's Review. p. 100. Archived from the original (PDF) on March 23, 2006. Retrieved February 14, 2018.
  6. ^ "National heritage fugitive awaits extradition in Vienna". Best's Review. 101 (8): 17. December 2000.
  7. ^ Chris McKenna (July 1, 2002). "Convicted thief paid for religious school". Times Herald-Record. Middletown, NY.
  8. ^ McKenna, Chris. "Trump commutes prison sentence of Monsey man serving 835 years for 1999 fraud conviction". Times Herald-Record. Retrieved 2021-01-23.
  9. Rashbaum, William K. (26 October 2000). "Fugitive Arrested in Austria After a Year on the Run". The New York Times.
  10. Susan Clary (October 26, 2000). "Extravagant Fugitive's Run Comes to An End". Orlando Sentinel.
  11. "Statement from the Press Secretary Regarding Executive Grants of Clemency – The White House". trumpwhitehouse.archives.gov. Retrieved 2021-01-27.
  12. Schulte, Fred (26 January 2021). "Trump's pardons included health execs behind massive Medicare frauds". Chicago Sun-Times. Kaiser Health News. Retrieved 27 January 2021.

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