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 by the government.
The case stems from his involvement with Jeff and Paulette Carpoff, the owners of DC Solar, a California-based company that was the center of a massive investment fraud and money laundering scheme.
Evidence presented in court showed that Strauss facilitated the transfer of funds for the Carpoffs after federal search and seizure warrants were executed on their businesses and personal residences in December 2018.
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Specifically, on January 15, 2019, Strauss directed the transfer of $3 million from an account in The Bahamas to his own trust account. He subsequently combined the funds in the account for his own personal use.
The Carpoffs owned and operated DC Solar Solutions, Inc., and DC Solar Distribution, Inc. (DC Solar), which designed, manufactured, and leased renewable energy products, primarily mobile solar generators. On December 18, 2018, the FBI and other federal agencies executed multiple search warrants on DC Solar-related businesses and the Carpoffs’ homes, along with seizure warrants on bank accounts and assets.
Following these warrants, Strauss received a total of $11 million from the Carpoffs. The first $5 million, transferred on December 19, 2018, was used to pay various criminal defense attorneys, bankruptcy counsel, and the Carpoffs’ captive insurance funds, which were managed by Strauss’s own captive insurance management company.
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On December 28, 2018, Strauss received an additional $3 million, primarily used to pay premiums for the Carpoffs’ captive insurance funds. The final $3 million transfer, on January 15, 2019, was deposited into Strauss’s trust account, and the combined funds were spent over the following months.
Jeff Carpoff pleaded guilty in California to money laundering and wire fraud in January 2020 and was sentenced to 30 years in prison. Paulette Carpoff pleaded guilty in November 2021 to conspiracy to commit an offense against the United States and money laundering and was sentenced to 11 years and three months.
Strauss pleaded guilty in November 2023 to removal of property to prevent seizure. He admitted that, by the time of the January 2019 transfer, he knowingly transferred and aided and abetted the transfer of the $3 million from the Carpoffs to prevent the government from seizing the funds.
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United States District Judge Richard M. Gergel sentenced Strauss to nine months of imprisonment, followed by a two-year term of supervised release. There is no parole in the federal system. Strauss was also ordered to pay $2.7 million in restitution, which he had already paid prior to sentencing, in accordance with his plea agreement.
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