[1][2][3] It is believed to have been the largest insurance company failure caused by criminal acts in U.S. history, resulting in $450 million of losses.
An investment group called Tri-Atlantic Holdings, operated by David Davies, Lambert Aloisi and Patrick Smythe, offered $4 million in return for a controlling interest in Lifeco and National Heritage.
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.
Many lost their life savings as a result of the fraud, though various guaranty funds repaid policy and annuity holders about $420 million.
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.
[5] While on the run, Weiss travelled to Israel, Europe and South America,[8] living extravagantly and spending money on fine dining, gambling and prostitution.