South Carolina-based lawyer Peter Strauss has pleaded guilty in a criminal fraud case involving captives. According to the state’s U.S. Attorney's Office, Strauss has pleaded guilty to “removal of property to prevent seizure”.
Strauss is the founder and CEO of Hamilton Captive Management, a captive insurance management company providing management services to clients’ captive insurance funds.
The U.S. Attorney's Office, District of South Carolina says: “Evidence obtained in the investigation revealed that Strauss knowingly transferred millions of dollars for Jeff and Paulette Carpoff, two individuals who have since been convicted and sentenced for their roles.”
Carpoff jointly owned and operated DC Solar Solutions and DC Solar Distribution (Solar Inc), both California-headquartered renewable energy companies.
Following an investigation by the FBI regarding an alleged investment fraud and money laundering scheme being operated by the principals of DC Solar, Strauss received US$11 million from the Carpoffs.
The first US$5 million was transferred into Strauss’ Interest on Lawyer’s Trust Account (IOLTA) and subsequently distributed to various criminal defence attorneys and bankruptcy counsel, as well as to the Carpoffs’ captive insurance funds managed by Strauss’ captive insurance management company. Strauss also received an additional $3 million, used to pay for the Carpoffs’ captive insurance fund premiums, according to the U.S. Attorney's Office.
In the final transfer, the Carpoffs wired another US$3 million into Strauss’ IOLTA account. Thereafter, the funds were commingled in Strauss’ IOLTA account and completely spent over the next few months.
