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{{short description|American fraudster}}
{{short description|American fraudster}}
{{pp-vandalism|small=yes}}
{{use mdy dates |date=March 2021}}
{{use mdy dates |date=March 2021}}
{{Infobox criminal
{{Infobox criminal
| name = Sholam Weiss
| name = Sholam Weiss
| image_name = Sholam Weiss.jpg
| image_name = Sholam Weiss.jpg
| image_size =
| image_size =
| caption =
| caption =
| birth_date =
| birth_date = {{Birth year and age|1954|}}<ref name=statement/>
| birth_place = [[Brooklyn]], [[New York (state)|New York]], U.S.
| birth_place = [[Brooklyn]], [[New York (state)|New York]], U.S.
| occupation = Former business consultant
| occupation = Former business consultant
| status = Released via presidential sentence commutation, January 19, 2021
| status = Released via presidential sentence commutation, January 19, 2021
| charge = 78 counts of [[racketeering]], [[wire fraud]] and [[money laundering]]
| charge = 78 counts of [[racketeering]], [[wire fraud]] and [[money laundering]]
| penalty = 835 years imprisonment (reduced from 845 years in 2009), three years supervised release, $123.4 million fine, $125 million restitution, $57 million forfeitures<ref name='doj'>{{cite web |title=Commutations granted by President Donald Trump (2017 - 2021) |url=https://www.justice.gov/pardon/commutations-granted-president-donald-trump-2017-2021 |website=www.justice.gov |language=en |date=20 December 2017}}</ref>
| penalty = 835 years imprisonment (reduced from 845 years in 2009), three years supervised release, $123.4 million fine, $125 million restitution, $57 million forfeitures<ref name='doj'>{{cite web |title=Commutations granted by President Donald Trump (2017 - 2021) |url=https://www.justice.gov/pardon/commutations-granted-president-donald-trump-2017-2021 |website=www.justice.gov |language=en |date=20 December 2017 |access-date=January 29, 2021 |archive-date=January 26, 2021 |archive-url=https://web.archive.org/web/20210126085328/https://www.justice.gov/pardon/commutations-granted-president-donald-trump-2017-2021 |url-status=dead }}</ref>
}}
}}


'''Sholam Weiss''' is an American former businessman and convicted [[fraud]]ster.
'''Sholam Weiss''' (born 1954) is an American convicted [[fraud]]ster.


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.<ref>{{cite web|last=Writer|first=Susan Clary, Sentinel Staff|title=INSURANCE THIEF BACK IN FLORIDA|url=https://www.orlandosentinel.com/news/os-xpm-2002-06-10-0206100264-story.html|access-date=2021-01-17|website=OrlandoSentinel.com|language=en-US}}</ref><ref name="Times-2000" />
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.<ref>{{cite web|author=Susan Clary|title=Insurance Thief Back in Florida| url=https://www.orlandosentinel.com/news/os-xpm-2002-06-10-0206100264-story.html|access-date=2021-01-17|website= [[Orlando Sentinel]] |date=June 10, 2002 |language=en-US}}</ref><ref name="Times-2000" />


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]].<ref name=":1" /><ref name="Times-2000" /><ref name="Anatomy 100" /> 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.
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]].<ref name=":1" /><ref name="Times-2000" /><ref name="Anatomy 100" /> Weiss fled the country during jury deliberations in October 1999, and was extradited from Austria in 2002. His sentence was [[List of people granted executive clemency by Donald Trump|commuted]] by President [[Donald Trump]] on January 19, 2021. Weiss was released that same day.


==Early life and background==
==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.<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|access-date=6 July 2009}}</ref>
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.<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|access-date=6 July 2009}}</ref>


In 1994, Weiss was indicted on [[mail fraud]] charges and found guilty, for which he served eight months in prison. 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 [[mail fraud]] charges and found guilty, for which he served eight months in prison. Weiss had falsely claimed that more than $1 million worth of bathtubs had been damaged in a 1986 warehouse fire.<ref name="Times-2000" />


==National Heritage Life Insurance Company fraud ==
==National Heritage Life Insurance Company fraud ==
{{main|National Heritage Life Insurance Company}}
{{main|National Heritage Life Insurance Company}}


In a scheme that the ''[[The New York Times|New York Times]]'' 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 New York Times]]'' 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 1990, the insurer was taken over by fraudsters who paid for the company with a check for $4 million, although they did not actually have $4 million.<ref name="Anatomy 100" /> Then, using a variation on a simple [[Check kiting|check-kiting]] scheme, they lent themselves the money to cover the purchase price. Weiss became involved in the fraud in 1992 through an attorney, Michael Blutrich, who later admitted to the fraud and became a federal witness. After taking control, 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" /><ref name="Anatomy 100" />
In 1990, the insurer was taken over by fraudsters who paid for the company with a check for $4 million, although they did not actually have $4 million.<ref name="Anatomy 100" /> Then, using a variation on a simple [[Check kiting|check-kiting]] scheme, they lent themselves the money to cover the purchase price. Weiss became involved in the fraud in 1992 through an attorney, Michael Blutrich, who later admitted to the fraud and became a federal witness. After taking control, 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" /><ref name="Anatomy 100" />
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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" />


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.<ref name="Bests Dec2000">{{cite journal |title=National heritage fugitive awaits extradition in Vienna |journal=Best's Review |date=December 2000 |volume=101 |issue=8 |page=17}}</ref>
National Life, which was liquidated in 1995, had about 35,000 policy holders, 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.<ref name="Bests Dec2000">{{cite journal |title=National heritage fugitive awaits extradition in Vienna |journal=Best's Review |date=December 2000 |volume=101 |issue=8 |page=17}}</ref>


===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 [[Trial in absentia|in absentia]] at the trial and 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 [[Trial in absentia|in absentia]] at the trial and 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">{{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 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" />


After fleeing the trial Weiss travelled to Israel, Belgium, Brazil, Austria and the United Kingdom.<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> Weiss shaved his beard, lost weight, used prepaid phones and created false identities to avoid detection. During this time he lived an extravagant lifestyle and spent money on fine dining, gambling and prostitution.<ref name=":3" /> He was apprehended in [[Vienna]], Austria and [[Extradition|extradited]] 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" />
After fleeing the trial Weiss travelled to Israel, Belgium, Brazil, Austria and the United Kingdom.<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> Weiss shaved his beard, lost weight, used prepaid phones and created false identities to avoid detection. During this time he lived an extravagant lifestyle and spent money on fine dining, gambling and prostitution.<ref name=":3" /> He was apprehended in [[Vienna]], Austria and [[Extradition|extradited]] 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" />
Line 45: Line 44:
==Campaign to commute sentence==
==Campaign to commute sentence==


Weiss' sentence was controversial due to its length, which exceeded the 150-year sentence imposed on [[Bernie Madoff|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.<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 [[Brett Tolman]] to press for commutation, and other supporters included former [[United States Attorney General|U.S. Attorney General]] [[Edwin Meese]], former [[Solicitor General of the United States|U.S. Solicitor General]] [[Seth P. Waxman|Seth Waxman]] and [[Harvard Law School]] professor [[Alan Dershowitz]]. The commutation campaign was spearheaded by his nephew.<ref name=":1" />
Weiss' sentence was controversial due to its length, which exceeded the 150-year sentence imposed on [[Bernie Madoff|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.<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|access-date=2021-01-23}}</ref><ref name=":0" /> 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 P. Waxman|Seth Waxman]] and [[Harvard Law School]] professor [[Alan Dershowitz]]. The commutation campaign was spearheaded by his nephew.<ref name=":1" />


⚫
''[[The New York Times]]'' reported that Weiss was one of several "wealthy or well-connected people" who "benefited from their social, political, or financial ties to a loose collection of lawyers, lobbyists, activists and Orthodox Jewish leaders who had worked with Trump administration officials on criminal justice legislation championed by Jared Kushner." It reported that Weiss' case had been discussed at the White House for several years but met resistance. A Republican operative brought it to the attention of [[Mark Meadows]], Trump's chief of staff, and Weiss' commutation followed.<ref>{{Cite news|last1=Vogel|first1=Kenneth P.|last2=Confessore|first2=Nicholas|date=2021-03-21|title=Access, Influence and Pardons: How a Set of Allies Shaped Trump's Choices|language=en-US|work=The New York Times|url=https://www.nytimes.com/2021/03/21/us/politics/trump-pardons.html|access-date=2021-03-21|issn=0362-4331}}</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 last full 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 |publisher=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, ''[[The Washington Post]]'' 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= 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 last full 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 name=statement>{{Cite web|title=Statement from the Press Secretary Regarding Executive Grants of Clemency|url=https://trumpwhitehouse.archives.gov/briefings-statements/statement-press-secretary-regarding-executive-grants-clemency-012021/|access-date=2021-01-27|website=trumpwhitehouse.archives.gov|publisher=The White House}}</ref><ref>{{cite news|last1=Schulte|first1=Fred|date=26 January 2021|title=Trump's pardons included health execs behind massive Medicare frauds|language=en|work=Chicago Sun-Times|agency=Kaiser Health News|url=https://chicago.suntimes.com/politics/2021/1/26/22249570/trumps-pardons-medicare-fraud-esformes-melgen|access-date=27 January 2021}}</ref><ref name=":0" /> Two months later, Weiss suffered a [[stroke]].<ref>{{cite news |author=<!--Not stated--> |title=TEHILLIM - Shulem Weiss Suffers Stroke - Just Two Months After Commuted By President Trump |url=https://www.theyeshivaworld.com/news/featured/1953686/tehillim-shulem-weiss-suffers-stroke-just-two-months-after-commuted-by-president-trump.html |access-date=16 January 2022 |work=The Yeshiva World |date=3 March 2021}}</ref>
⚫
In March 2021, a ''[[The New York Times|New York Times]]'' investigation reported that Weiss was one of several "wealthy or well-connected people" who "benefited from their social, political, or financial ties to a loose collection of lawyers, lobbyists, activists and Orthodox Jewish leaders who had worked with Trump administration officials on criminal justice legislation championed by Jared Kushner." It reported that Weiss' case was brought to the attention of [[Mark Meadows (North Carolina politician)|Mark Meadows]], Trump's chief of staff, and that Weiss' commutation followed.<ref>{{Cite news|last=Vogel|first=Kenneth P.|last2=Confessore|first2=Nicholas|date=2021-03-21|title=Access, Influence and Pardons: How a Set of Allies Shaped Trump’s Choices|language=en-US|work=The New York Times|url=https://www.nytimes.com/2021/03/21/us/politics/trump-pardons.html|access-date=2021-03-21|issn=0362-4331}}</ref>

In an editorial, ''[[The Washington Post]]'' 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|date=2021-01-20|title=On his final day, Trump demeaned the presidency one more time|language=en-US|newspaper=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|access-date=2021-01-24|issn=0190-8286}}</ref>


==See also==
==See also==
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[[Category:American businesspeople convicted of crimes]]
[[Category:American businesspeople convicted of crimes]]
[[Category:American confidence tricksters]]
[[Category:American confidence tricksters]]
⚫
[[Category:American fraudsters]]
[[Category:American investors]]
[[Category:American investors]]
[[Category:American Jews]]
[[Category:20th-century American Jews]]
[[Category:American money launderers]]
[[Category:American people convicted of money laundering]]
[[Category:American people convicted of fraud]]
[[Category:American people convicted of fraud]]
[[Category:American prisoners and detainees]]
[[Category:American prisoners and detainees]]
[[Category:American white-collar criminals]]
[[Category:American people of Hungarian-Jewish descent]]
[[Category:American people of Hungarian-Jewish descent]]
[[Category:Fugitive financiers]]
[[Category:Fugitive financiers]]
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[[Category:People extradited from Austria]]
[[Category:People extradited from Austria]]
[[Category:People extradited to the United States]]
[[Category:People extradited to the United States]]
[[Category:People from Brooklyn]]
[[Category:Criminals from Brooklyn]]
[[Category:Prisoners and detainees of the United States federal government]]
[[Category:Prisoners and detainees of the United States federal government]]
[[Category:Recipients of American presidential clemency]]
[[Category:Recipients of American presidential clemency]]
⚫
[[Category:21st-century American Jews]]

Latest revision as of 05:04, 23 August 2024

Sholam Weiss
Born1954 (age 69–70)[2]
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[1]

Sholam Weiss (born 1954) is an American 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.[3][4]

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.[5][4][6] 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. Weiss was released that same day.

Early life and background

[edit]

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.[4]

In 1994, Weiss was indicted on mail fraud charges and found guilty, for which he served eight months in prison. Weiss had falsely claimed that more than $1 million worth of bathtubs had been damaged in a 1986 warehouse fire.[4]

National Heritage Life Insurance Company fraud

[edit]
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", 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".[4][6]

In 1990, the insurer was taken over by fraudsters who paid for the company with a check for $4 million, although they did not actually have $4 million.[6] Then, using a variation on a simple check-kiting scheme, they lent themselves the money to cover the purchase price. Weiss became involved in the fraud in 1992 through an attorney, Michael Blutrich, who later admitted to the fraud and became a federal witness. After taking control, 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.[4][6]

The heavy involvement of attorneys, who comprised one-quarter of the persons eventually convicted, helped the conspirators keep the fraud secret.[6]

National Life, which was liquidated in 1995, had about 35,000 policy holders, 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.[7]

Trial, sentencing and flight

[edit]

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.[8] Weiss fled the country while the jury was deliberating. In November 1999, he was found guilty in absentia at the trial and 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.[1][6][5] The restitution was paid.[9] 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.[4]

After fleeing the trial Weiss travelled to Israel, Belgium, Brazil, Austria and the United Kingdom.[10] Weiss shaved his beard, lost weight, used prepaid phones and created false identities to avoid detection. During this time he lived an extravagant lifestyle and spent money on fine dining, gambling and prostitution.[10] He was apprehended in Vienna, Austria and extradited to the United States in 2002.[11][8] At the time of his extradition, Weiss was believed by the FBI to have control of $250 million stolen from National Life.[7] Another estimate was that he controlled half of the $450 million he helped steal.[10]

Campaign to commute sentence

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Weiss' sentence was controversial due to its length, which exceeded 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.[5][9] 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.[5]

The New York Times reported that Weiss was one of several "wealthy or well-connected people" who "benefited from their social, political, or financial ties to a loose collection of lawyers, lobbyists, activists and Orthodox Jewish leaders who had worked with Trump administration officials on criminal justice legislation championed by Jared Kushner." It reported that Weiss' case had been discussed at the White House for several years but met resistance. A Republican operative brought it to the attention of Mark Meadows, Trump's chief of staff, and Weiss' commutation followed.[12]

On January 19, 2021, President Donald Trump commuted Weiss's sentence, in one of the 70 pardons and 73 sentence commutations issued on his last full 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."[2][13][9] Two months later, Weiss suffered a stroke.[14]

In an editorial, The Washington Post 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".[15]

See also

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References

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  1. ^ a b "Commutations granted by President Donald Trump (2017 - 2021)". www.justice.gov. December 20, 2017. Archived from the original on January 26, 2021. Retrieved January 29, 2021.
  2. ^ a b "Statement from the Press Secretary Regarding Executive Grants of Clemency". trumpwhitehouse.archives.gov. The White House. Retrieved January 27, 2021.
  3. ^ Susan Clary (June 10, 2002). "Insurance Thief Back in Florida". Orlando Sentinel. Retrieved January 17, 2021.
  4. ^ a b c d e f g Rashbaum, William K. (March 9, 2000). "845 Years in Prison, If the Authorities Can Catch Him; F.B.I. Says Fugitive Has a Flair For Fraud and Hiding Stolen Cash". The New York Times. Retrieved July 6, 2009.
  5. ^ a b c d Yaffe-Bellany, David (January 20, 2021). "Fraudster Returns Home After Trump Commutes 835-Year Term". Bloomberg.com. Retrieved January 23, 2021.
  6. ^ a b c d e f 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.
  7. ^ a b "National heritage fugitive awaits extradition in Vienna". Best's Review. 101 (8): 17. December 2000.
  8. ^ a b Chris McKenna (July 1, 2002). "Convicted thief paid for religious school". Times Herald-Record. Middletown, NY.
  9. ^ a b c McKenna, Chris. "Trump commutes prison sentence of Monsey man serving 835 years for 1999 fraud conviction". Times Herald-Record. Retrieved January 23, 2021.
  10. ^ a b c Rashbaum, William K. (October 26, 2000). "Fugitive Arrested in Austria After a Year on the Run". The New York Times.
  11. ^ Susan Clary (October 26, 2000). "Extravagant Fugitive's Run Comes to An End". Orlando Sentinel.
  12. ^ Vogel, Kenneth P.; Confessore, Nicholas (March 21, 2021). "Access, Influence and Pardons: How a Set of Allies Shaped Trump's Choices". The New York Times. ISSN 0362-4331. Retrieved March 21, 2021.
  13. ^ Schulte, Fred (January 26, 2021). "Trump's pardons included health execs behind massive Medicare frauds". Chicago Sun-Times. Kaiser Health News. Retrieved January 27, 2021.
  14. ^ "TEHILLIM - Shulem Weiss Suffers Stroke - Just Two Months After Commuted By President Trump". The Yeshiva World. March 3, 2021. Retrieved January 16, 2022.
  15. ^ "On his final day, Trump demeaned the presidency one more time". Washington Post. January 20, 2021. ISSN 0190-8286. Retrieved January 24, 2021.
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