Peter J. Strauss, a lawyer from Hilton Head, South Carolina, has been sentenced to nine months in federal prison for his involvement in transferring $3 million to prevent its lawful seizure. The transfer was linked to Jeff and Paulette Carpoff, who were under investigation for an investment fraud and money laundering scheme involving their companies, DC Solar Solutions, Inc. and DC Solar Distribution, Inc.
The investigation revealed that Strauss directed the transfer of $3 million from an account in the Bahamas to his trust account after federal search and seizure warrants were executed on the Carpoffs' businesses and residences. These funds were then combined for personal use.
In December 2018, following the execution of these warrants, Strauss received a total of $11 million from the Carpoffs. This included an initial $5 million transferred into his trust account, which was distributed to various criminal defense attorneys and bankruptcy counsel as well as used for captive insurance funds managed by Strauss’ company. An additional $3 million was received later that month for similar purposes. By January 15, 2019, another $3 million was wired into Strauss’ trust account.
Jeff Carpoff pleaded guilty to money laundering and wire fraud in January 2020 and received a 30-year prison sentence. Paulette Carpoff pleaded guilty to conspiracy to commit an offense against the United States and money laundering in November 2021 and was sentenced to over 11 years.
Strauss admitted guilt in November 2023 for removing property to prevent seizure. He acknowledged knowingly transferring funds in January 2019 with the intent to obstruct government authority over the property.
United States District Judge Richard M. Gergel imposed a nine-month prison sentence on Strauss, followed by two years of court-ordered supervision. There is no parole in the federal system. Additionally, Strauss was ordered to pay $2.7 million in restitution, which he had already fulfilled according to his plea agreement.
The FBI Columbia Field Office conducted the investigation with Assistant U.S. Attorney Emily Limehouse prosecuting the case.