Hilton Head Lawyer Gets Nine Months For Money Laundering

News Summary

Peter J. Strauss, a lawyer from Hilton Head, was sentenced to nine months in federal prison for his involvement in a $3 million money laundering scheme. The case, which has impacted the legal community, involved transferring funds to evade government seizure. Strauss will need to pay $2.7 million in restitution, marking a significant fall from grace in his professional career.

Hilton Head Lawyer Receives Nine-Month Sentence for Involvement in $3 Million Money Laundering

In a surprising turn of events, Peter J. Strauss, a 46-year-old lawyer from Hilton Head, has been sentenced to serve nine months in federal prison for his role in a significant money laundering scheme totaling a whopping $3 million. The case has sent shockwaves through the local legal community and beyond, highlighting the serious repercussions of aiding in illegal financial transactions.

Understanding the Scheme

Strauss was not just a passive bystander; he actively transferred, aided, and encouraged the movement of funds meant to dodge lawful government seizure. This all revolved around the Carpoffs, a couple who owned the companies DC Solar Solutions, Inc. and DC Solar Distribution, Inc. They were embroiled in what authorities have termed the largest criminal fraud scheme in the Eastern District of California, which included investment fraud and widespread money laundering.

FBI’s Drastic Action

Things took a dramatic turn on December 18, 2018, when the FBI swooped in, executing search and seizure warrants at the Carpoffs’ business locations and their personal homes. The aftermath of this action saw Strauss on the receiving end of $11 million from the Carpoffs during multiple transactions, raising eyebrows about the motivations behind these hefty transfers.

Tracing the Transactions

It began on December 19, 2018, when a staggering $5 million was funneled into Strauss’ trust account, later divided among various attorneys and used for insurance premiums. Just over a week later, on December 28, 2018, an additional $3 million made its way to him, supposedly for the Carpoffs’ captive insurance fund premiums. The final blow came on January 15, 2019, with another $3 million wired to Strauss, which he later confessed was intended to shield the funds from government takeover.

The Money Spent

As the months rolled on, Strauss reported that the combined funds in his account were completely spent. This reckless financial maneuvering has led to serious legal consequences, not just for the Carpoffs, but for him as well.

The Carpoffs’ Fate

The Carpoffs are facing their own severe consequences. Jeff Carpoff pleaded guilty to charges of money laundering and wire fraud in January 2020, resulting in a hefty 30-year prison sentence. Meanwhile, Paulette Carpoff followed suit, pleading guilty to conspiracy and money laundering, and was sentenced to over 11 years in prison in November 2021. Their criminal activities have sent rippling effects through the financial community.

Strauss Takes Responsibility

Fast forward to November 2023, and Peter J. Strauss found himself pleading guilty to the charge of removal of property to prevent seizure. This admission of guilt led to his nine-month prison sentence, coupled with a two-year term of court-ordered supervision following his release. Additionally, he has been mandated to pay $2.7 million in restitution, a requirement he has already fulfilled as part of his plea agreement.

A Fall from Grace

Strauss previously made a name for himself managing the Strauss Law Firm, where he focused on estate and tax planning as well as captive insurance solutions. However, following his conviction, his attorney status has been suspended by the South Carolina Bar Association, marking a significant fall from grace in his professional career.

Conclusion

This case serves as a stark reminder of the legal consequences that come with engaging in or assisting with illicit activities. As the legal repercussions unfold for Strauss and the Carpoffs, the community reflects on the need for greater accountability in financial dealings. Stay tuned for further updates on this story as it continues to develop.

Deeper Dive: News & Info About This Topic

HERE Resources

Charleston Execution Date Raises Legal and Ethical Concerns
Brad Sigmon’s Execution Scheduled for March 2025
Trump Administration Ends Protection for Venezuelan Migrants
Major Shake-Up at the Justice Department Amid Controversy
Supreme Court’s Decision on TikTok’s Future Approaches
Supreme Court Reviews TikTok Ban Over National Security Issues
South Carolina Supreme Court Schedules Execution of Marion Bowman Jr.
Columbia Falls Man Receives 20-Year Sentence for Stabbing
Tim Pearson Named New President of Duke Energy South Carolina
Duke Energy Appoints Tim Pearson as South Carolina State President

Additional Resources

• ABC News 4
• Wikipedia: Money laundering
• Island Packet
• Google Search: Money laundering news
• News Break
• Google Scholar: Legal consequences of money laundering
• ABC News 4 – Guilty Plea
• Encyclopedia Britannica: Fraud