Captive manager sentenced to nine months in prison

A Beaufort, South Carolina-based captive manager was sentenced Thursday 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.

Peter J. Strauss, founder of Strauss Law Firm LLC and founder and CEO of Hamilton Captive Management, based in Hilton Head, South Carolina, previously had pleaded guilty to removal of property to prevent seizure.

U.S. District Judge Richard M. Gergel sentenced Mr. Strauss to nine months in prison, followed by a two-year term of court-ordered supervision, the U.S. Attorney’s Office for the District of South Carolina said Friday in a statement.

Mr. Strauss last year agreed to pay $2.7 million in restitution to comply with the terms of his plea agreement in connection with an alleged money laundering scheme.

Evidence obtained in the investigation revealed that Mr. 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, according to the statement.

Mr. Strauss directed the transfer of funds from an account in the Bahamas to his trust account, then combined the funds for his personal use, according to the statement.

Jeff and Paulette Carpoff were convicted and sentenced to prison in 2020 and 2022, respectively, in the Eastern District of California for their roles in the investment fraud and money laundering scheme.

The couple had owned and operated DC Solar Solutions Inc. and DC Solar Distribution Inc., now defunct Benicia, California-based solar power companies that the FBI seized in 2018.