Source: Office of United States Attorneys
CHARLESTON, S.C. — Peter J. Strauss, 46, of Hilton Head, South Carolina, has 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.
Evidence obtained in the 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.
Jeff and Paulette Carpoff owned and operated DC Solar Solutions, Inc. and DC Solar Distribution, Inc. (DC Solar), California corporations that designed, manufactured, and leased renewable energy products, specializing predominantly in the production of mobile solar generators.
On Dec. 18, 2018, the FBI and other federal law enforcement agencies executed numerous search warrants on the businesses associated with DC Solar, as well as the personal residences of Jeff and Paulette Carpoff. Several seizure warrants were also executed on bank accounts and assets associated with DC Solar and its principals. The search warrants were conducted in conjunction with a large-scale investigation regarding an investment fraud and money laundering scheme being operated by the principals of DC Solar.
Following the execution of search and seizure warrants related to an investigation into the Carpoffs’ company, Strauss received $11 million from the Carpoffs. On Dec. 19, 2018, the first $5 million was transferred into Strauss’ trust account and thereafter distributed to various criminal defense attorneys and bankruptcy counsel and to Carpoffs’ captive insurance funds, managed by Strauss’ captive insurance management company. Thereafter, on Dec. 28, 2018, Strauss received an additional $3 million, largely used to pay for the Carpoffs’ captive insurance fund premiums. Finally, on Jan. 15, 2019, the Carpoffs wired Strauss $3 million into Strauss’ trust account. The combined funds in Strauss’ trust account were completely spent over the next few months.
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 pleaded guilty in November 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 Carpoff to prevent and impair the government’s lawful authority to take the property into its custody and control.
United States District Richard M. Gergel sentenced Strauss to nine months imprisonment, to be followed by a two-year term of court-ordered supervision. There is no parole in the federal system. Strauss was ordered to pay $2.7 million in restitution, which Strauss previously paid in compliance with the terms of his plea agreement.
This case was investigated by the FBI Columbia Field Office. Assistant U.S. Attorney Emily Limehouse prosecuted the case.
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