Hilton Head Island lawyer pleads guilty to hiding clients’ millions from federal seizure
Peter J. Strauss, the founder of Hilton Head Island’s Strauss Law firm pleaded guilty to receiving millions of dollars from a fraudulent California solar power company in order to prevent his client’s money from being forfeited to the U.S. government. He is facing as many as five years in prison for the crime of “removal of property to prevent seizure” according to the U.S. Department of Justice.
Strauss, 45, of Beaufort, is a founder and partner of Strauss Law firm specializing in estate and tax planning, asset protection and insurance solutions for clients.
According to the justice department, Strauss received $11 million in three transfers between Dec. 19, 2018 and Jan. 15 2019 from Jeff and Paulette Carpoff of California-based DC Solar Solutions Inc. The Carpoffs were operating an investment fraud and money laundering scheme and have since been convicted in the largest criminal fraud scheme in the Eastern District of California. The Carpoff’s business claimed to design, manufacture and lease renewable energy products,
In 2020, Jeff Carpoff was sentenced to 30 years in prison for money laundering and wire fraud and in 2021. Paulette Carpoff was sentence to 11 years and three months in prison for conspiracy and money laundering.
On December 18, 2018 search warrants were issued for the Carpoffs’ businesses and home. One day later, Strauss received his first transfer of funds, in the sum of $5 million, from the Carpoffs to avoid the money’s seizure. The funds were then distributed to the Carpoff’s defense and bankruptcy attorneys. The final transfer of funds occurred Jan. 15, 2019 when he Carpoffs wired $3 million into Strauss’ law firm’s trust account used for client accounts. The $3 million was subsequently spent but there is no mention on where it went.
By pleading guilty, Strauss is admitting to transferring and aiding and abetting the transfer of the funds, preventing the government’s authority to take the money. Strauss has agreed to pay $2.7 million in restitution to the Federal Clerk of Court at or before the sentencing.
Strauss can be sentenced to up to five years in a federal prison and can be fined up to $250,000, the above mentioned restitution, and three years of supervision following his imprisonment.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Emily Limehouse is prosecuting the case.
