Sholam Weiss is serving the longest sentence ever imposed for a white-collar crime despite the fact that he clearly did not commit the worst white-collar crime.  Sholam Weiss’s unprecedented 845-year sentence diverges significantly from both federal and state sentences for similar white-collar crimes.  Both the length and the disparity of his sentence compared to that of other white-collar criminals demonstrate that Sholam Weiss’s sentence is exceedingly harsh, especially in light of the background and nature of his crime, including evidence that his actions did not result in losses to National Heritage.  The 17-year sentence that Shalom Weiss has already served far exceeds the sentences of co-defendants and other defendants who played larger roles in the crimes. If re-sentenced today, Sholam Weiss would not receive more than he has already served, and would most likely be sentenced to a range of 30-37 months (see 845 years),   a sentence Sholam Weiss has already served six times over.

Sholam Weiss growing up

Sholam Weiss is the son of Auschwitz Holocaust survivors. After the war, his parents immigrated to the United States, where his father owned and operated a fruit store in Brooklyn, New York to support nine children. Sholam Weiss was raised in an orthodox Jewish community, and received no formal education other than religious schooling. Upon his graduation at the Yeshivah, he worked as a small general contractor, and in 1974 bought a plumbing supply company.

after the recession of 1990 , Sholam Weiss became a financial consultant and came to work with various individuals in the financial world, primarily in the Jewish community.

Sholam Weiss getting involved with National Heritage

In 1993 Sholam Weiss was contacted by a high profile New York  attorney Micheal Bultrich and businessman Lyle K. Pfeffer,  members of the National Heritage Life Insurance Company.  Blutrich and Pfeffer told Sholam Weiss that NHLC  was having financial problems due to bad investments. they asked Sholam Weiss if he could raise capital for NHLC and if Sholam Weiss could help with any financial investment to but NHLC on a profitable path.  

Seizing the opportunity as a lucrative investment, Sholam Weiss offered to invest $20 million of his own assets in exchange for preferred stock in National Heritage.  He also proposed that South Star a company controlled by Sholam Weiss, purchase discounted mortgages on behalf of National Heritage, and service them to full value to increase NHLC profit.  He believed that this would raise enough money to get National Heritage back into financial health.

Sholam Weiss through South Star entered into a contract with NHLC, the agreement was that Sholam Weiss will receive approximately $100 million dollars  of  NHL money, the money will be invest in various different investments all secured by a underlining asset,   for the benefit on NHLC..

Sholam Weiss took the money and invested them in a pool of mortgaged (see purchase list  )

Sholam Weiss was never directly employed or had any officer position at National Heritage, he had no controlling  over NHLC  decision making  or its books.

Sholam Weiss’ company, South Star, entered into an agreement with National Heritage’s CEO , to receive $100 million dollars from National Heritage, invest that in discounted mortgages, service them, then return them to National Heritage. As stated above Sholam Weiss also agreed and invest $20 million of his own assets in exchange for preferred stock.

South Star bought mortgages of face value of $177 million dollars for $90 million dollars  at a 52% discount.  

Sholam Weiss the crime,  the  loss & the governments lie 

in the late 1993 while Sholam Weiss was involved with National Heritage for approximately 6 months, Sholam  Weiss did not know that the members controlling National Heritage had embezzled $35 million dollars from NHLC, creating a $35 million hole in the company's books, plus an additional $10 million dollars (See  PSR P, 16,17,18 ,19  and  Anatomy of Failure by sally Whitner), this all happened prior to Sholam  Weiss' involvement with NHLC. the members of the insurance company  motive by hiring Sholam Weiss  was to make enough profit to fill in that $35 million hole in the company, then clean up the balance sheet, while in the  mean time conceal the losses from the regulators .  The government has never contested the fact that Sholam  Weiss was unaware of the $35 million hole prior to getting involved with the company. 

Sholam Weiss was never directly employed or had any officer position at National Heritage, he had no controlling  over NHLC  decision making  or its books.

the governments theory and conviction of Sholam Weiss was the concealment of the fraud, the government claimed that after NHLC members embezzled $35-45 million dollar hole Weiss got involved to further conceal the regulators, additionally the government claimed that the contract between south start and NHLC did not allow Sholam Weiss to purchase non preforming notes, considering the transaction money laundering and transporting of stolen money, even though 80 percent of the mortgage portfolio were FDIC insured at face value. the receivers took the discounted mortgages and made a huge profit.    

In 2000, Sholam Weiss was sentenced to an unjust 845 years in prison for money laundering, and $125 in restitution, in connection with the National Heritage Life Insurance Company financial collapse. NHLC has not suffered any lose due to Sholam Weiss's actions. Sholam Weiss was charged for the concealment of the embezzlement by the officers of NHLC , Sholam Weiss was ultimately  convicted for money laundering and transportation of stolen property, ( conviction report ) Sholam Weiss  has not gained or benefited from the collapse of NHLC. Sholam Weiss lost $20 million  assets that he invested for preferred stock of NHLC, which became worthless.

Shalom Weiss Today

He has spent the last 17 years attempting to vindicate himself.

While in prison, he has served as Rabbi to other Jewish inmates, teaching the culture and background of the Jewish religion, and providing spiritual guidance and motivational support.

Sholam Weiss has been married for 40 years and has 5 married children and 30 grandchildren.