Table of Contents

Broken Badges: SC Attorney Sentenced in Federal Fraud Scheme: A Broken System of Justice?

Broken Badges Series
By James Seidel, CC News Network

CHARLESTON, S.C., – We have yet another officer of the court to fall in our series called, Broken Badges. The South Carolina legal system has taken down yet another corrupt attorney—but the question remains: why do some bad actors in the system face severe punishment while others get a slap on the wrist?

On Friday, the U.S. Attorney’s Office for South Carolina announced that Peter J. Strauss, 46, was sentenced to nine months in federal prison for knowingly transferring $3 million to prevent the lawful seizure of funds. This comes in stark contrast to other legal figures who have faced drastically different fates.

The Investigation

A federal probe revealed that Strauss helped funnel $3 million on behalf of Jeff and Paulette Carpoff, who ran DC Solar Solutions, Inc., a fraudulent investment scheme. The funds were moved from an account in the Bahamas to Strauss’ trust account before being used for personal transactions.

Authorities had already seized multiple bank accounts and assets linked to DC Solar when Strauss received $11 million from the Carpoffs. Between December 2018 and January 2019, the funds were funneled into his trust account, disbursed to defense attorneys, and ultimately spent within months.

Despite knowingly obstructing a federal investigation, Strauss received just nine months behind bars—a fraction of the punishment compared to others in South Carolina’s legal community.

A Pattern of Unequal Justice

The sentencing disparity becomes even more apparent when compared to the case of Alex Murdaugh, the disgraced Lowcountry attorney convicted of stealing $15 million from clients. Murdaugh received 40 years in federal prison for his financial crimes—more than four times the sentence of Strauss, despite both being high-ranking attorneys engaging in fraudulent financial schemes.

The inconsistency doesn’t stop there. Consider the case of John Keith Blincow Jr., a Charleston attorney disbarred on February 19, 2025 for misappropriating client funds and fabricating financial records. Blincow funneled stolen money into personal luxuries such as ski trips and country club memberships but never saw the inside of a prison cell. Despite his law license being permanently revoked, he managed to avoid serious criminal charges for years.

Meanwhile, Jeffrey Spell, another Charleston attorney, was suspended for just six months, despite a long history of fraud, tax evasion, and even a federal conviction for wire fraud. Like Blincow, Spell has escaped significant consequences despite decades of documented misconduct.

Broken Badges: The Bigger Picture – A System That Protects Its Own

The South Carolina Supreme Court has been firm in punishing misconduct within the legal community—but the criminal justice system has been far more lenient when attorneys commit financial crimes. The pattern is clear: attorneys who commit fraud and financial misconduct often avoid prison or serve minimal sentences, while others, like Murdaugh, receive the full force of the law.

This selective application of justice raises troubling questions:

Why did Alex Murdaugh get 40 years for financial crimes while Peter Strauss received nine months for obstructing a federal investigation?
Why has John Keith Blincow Jr. never served time despite defrauding clients for years?
Why was Jeffrey Spell given only a six-month suspension despite his long record of fraud and tax evasion?

South Carolina’s legal system appears to operate under a double standard—where high-profile cases are prosecuted aggressively, while others slip through the cracks with little more than a suspension or fine.

Broken Badges: Will True Justice Ever Be Served?

The disparities in punishment expose a system that selectively applies justice, depending on public scrutiny and political influence. Unless South Carolina’s legal community holds all of its members accountable equally, the system will remain broken—protecting corrupt lawyers while making high-profile scapegoats out of others.

CC News Network will continue exposing South Carolina’s Broken Badges.