Not Responsible For Losses to National Heritage


If sentenced today, Mr. Weiss would receive no more than 37 months

At his sentencing (February 7, 2000), Mr. Weiss was found to be responsible for $125 million in “losses or attempted losses”.

On July 28, 2016, the government gave ‘notice to the court’ that Mr. Weiss’ $125 million dollar restitution had been paid in full.  Satisfaction of Restitution.

According to the Receiver of National Heritage, the largest assets of National Heritage at the time of liquidation were the mortgages Mr. Weiss purchased with National Heritage funds, and then transferred to National Heritage.  See page 5 of the Receiver’s Report.  It is from these assets that the $125 in restitution was covered.

Thus, Mr. Weiss’ restitution was covered by those assets BEFORE Mr. Weiss’ sentencing.  He was never responsible for losses!

In a civil case in 2001, affirmed by the Second Circuit Court of Appeals in 2002, the court found that the mortgages purchased by Mr. Weiss realized a large profit, and that the evidence provided by the Receiver of National Heritage on the value of the mortgages (who also provided the same evidence to the district court that sentenced Mr. Weiss) was unreliable, grossly undervalued, and of doubtful admissibility.  Second Circuit Summary Order.

Mr. Weiss’ purchases of mortgages for National Heritage realized a profit, not a loss, and he was not personally responsible for any losses to National Heritage.

Under current federal sentencing guidelines, without losses, Mr. Weiss would receive a sentence of 37 months, which he has served several times over.  Opinion Letter by the NY law firm of Neiman & Mairanz.