Hilton Head lawyer sentenced for hiding millions in clients’ money from federal seizure
The founder of a Hilton Head Island law firm will serve prison time after pleading guilty to hiding millions of dollars for his Californian clients who ran a massive money laundering scheme.
Peter J. Strauss, 46, was sentenced Thursday to nine months in prison followed by two years of court-ordered supervision, according to the U.S. Attorney’s Office for the District of South Carolina. He was the managing partner of Strauss Law Firm, which specialized in estate and tax planning. His status as an attorney is currently under suspension by the South Carolina Bar Association.
Strauss previously represented Jeff and Paulette Carpoff, who owned and operated a set of California companies — DC Solar — that manufactured mobile solar generators. By paying early investors with funds from later investors, the Carpoffs soon began a Ponzi-like plot that was described as the largest criminal fraud scheme in the Eastern District of California.
On December 18, 2018, search warrants were issued for the Carpoffs’ businesses and home. One day later, the couple wired $5 million to Strauss to avoid the money’s seizure, prosecutors say.
The Carpoffs sent Strauss an additional $6 million over the next month, according to the Justice Department press release. The combined funds in Strauss’ trust account were reportedly “completely spent” in the following weeks.
In 2020, Jeff Carpoff was sentenced to 30 years in prison for money laundering and wire fraud. The following year, Paulette Carpoff received 11 years and three months in prison for money laundering and conspiracy.
Strauss pleaded guilty in November 2023 to removal of property to prevent seizure, admitting he accepted $3 million from the Carpoffs to prevent the government’s authority to take the money during the federal investigation. His plea agreement did not include accusations for the remaining $8 million in transfers, which covered his clients’ defense and bankruptcy lawyers and insurance premiums, according to reporting by The Post & Courier.
In March 2024, Strauss paid $2.7 million in restitution, which he agreed was the amount of money the Carpoffs paid him to assist in hiding the $11 million in assets from federal agents.
