OP you seriously need to educate yourself as to what the National Firearms Act is, and the realities of firearms that are regulated under that act.
What you are describing is an NFA regulated firearm configuration, to wit a "Short Barreled Rifle".
What you were told is both true and untrue. An SBR is not legal to just make one, or go down to the store and pick one up. They are legal once you go through the substantial Federal regulatory scheme, which involves paperwork, a $200 tax, fingerprints, and an 8 to 12 month wait. The NFA firearm is then registered to you personally and you must take precautions to prevent it being accessed by anyone else. Technical violations have severe legal penalties.
Many find the regulatory scheme surrounding NFA firearms to be too imposing, and choose to limit themselves to non-NFA firearms like long guns and pistols.
No, your rifle cannot be made into a pistol, you will have to start from scratch either with a stripped lower or buying an already-made pistol configuration, if you choose that route vs the NFA process. 16" barrel and 26" overall length are the non-NFA minimums for a rifle which is why you see so many in that size.