HILTON HEAD, S.C. (WSAV) — A Hilton Head attorney has been sentenced to federal prison for a scheme involving concealment of millions of dollars from the owners of a California corporation.
The United States' Attorney's office of South Carolina announced on Friday that Peter J. Strauss, 46, been sentenced to nine months in federal prison for knowingly transferring, and aiding and abetting the transfer of, $3 million to prevent the lawful seizure of the funds.
A federal investigation revealed that Strauss directed and aided and abetted the transfer of $3 million for Jeff and Paulette Carpoff following the execution of federal search and seizure warrants in California. Strauss directed the transfer of $3 million from an account in the Bahamas to his trust account, thereafter, combining the funds for his personal use.
The Carpoffs owned and operated DC Solar Solutions, Inc. and DC Solar Distribution, Inc. (DC Solar), California corporations that designed, manufactured, and leased renewable energy products.
On Dec. 18, 2018, the FBI and other federal law enforcement agencies executed numerous search warrants on the businesses associated with DC Solar and the residences of the Carpoffs.
Several seizure warrants were also executed on bank accounts and assets associated with DC Solar and its principals. The search warrants were conducted along with a large-scale investigation of an investment fraud and money laundering scheme being operated by the principals of DC Solar.
Following the execution of search and seizure warrants, Strauss received $11 million from the Carpoffs. On Dec. 19, 2018, the first $5 million was transferred into Strauss’ trust account and then distributed to criminal defense attorneys and bankruptcy counsel and to Carpoffs’ captive insurance funds, managed by Strauss’ captive insurance management company.
On Dec. 28, 2018, Strauss received another transfer in the sum of $3 million, largely used to pay for the Carpoffs’ captive insurance fund premiums. Finally, on Jan. 15, 2019, the Carpoffs wired Strauss another $3 million into Strauss’ trust account.
The total funds in Strauss’ trust account were completely spent over the next few months.
Strauss pleaded guilty in Nov. 2023 to removal of property to prevent seizure, admitting that by the time of the $3 million transfer in January 2019, he knowingly transferred and aided and abetted the transfer of funds from the Carpoffs to prevent and impair the government’s lawful authority to take the property into its custody and control.
Previously, Jeff Carpoff pleaded guilty in California to money laundering and wire fraud in January 2020 and was sentenced to 30 years in prison. In November 2021, Paulette Carpoff pleaded guilty to conspiracy to commit an offense against the United States and money laundering. Paulette was sentenced to 11 years and three months.
Strauss' nine-month imprisonment is to be followed by a two-year term of court-ordered supervision. There is no parole in the federal system. Strauss was also ordered to pay $2.7 million in restitution, which he previously paid in compliance with the terms of his plea agreement.
This case was investigated by the Federal Bureau of Investigation (FBI) Columbia Field Office. Assistant U.S. Attorney Emily Limehouse prosecuted the case.