CLEVELAND — The former vice president of Discovery Tours was sentenced Thursday to five years in prison for embezzling around $1.5 million of his family's money, causing the cancellation of school trips for more than 5,000 Northeast Ohio students.
U.S. District Court Judge Pamela Barker handed down the sentence to 48-year-old Joseph Cipolletti of Hudson, who pleaded guilty last year to an 18-count indictment that charged him with crimes such as wire fraud, money laundering, bank fraud, and making false statements under oath.
The former Mayfield Village-based Discovery Tours, Inc. offered educational trips for students to such destinations as Washington, D.C., New York City, Chicago, and Gettysburg, Pa. As vice president, it was Cipolletti's job to manage the company's finances. He also had signature authority on Discovery's business bank accounts.
Court documents revealed that from June 2014 to May 2018, Cipolletti had devised a scheme to defraud parents and other student trip purchasers by diverting payments intended for these trips to his own personal use on items such as home renovations and vehicles.
As a result of Cipolletti’s actions and subsequent attempts to cover up the scheme, in May 2018, Discovery Tours abruptly ended operations and filed for bankruptcy. 3News first reported on the story on May 2, 2018, after Mentor High School's Washington, D.C. trip was abruptly canceled. Two days later, then Ohio Attorney General Mike DeWine revealed that his office had received more than 170 complaints about Discovery Tours. That number eventually ballooned to more than 700 complaints.
On May 7, 2018, Discovery Tours filed for Chapter 7 bankruptcy protection. Documents filed showed the company had $1.3 million dollars in assets, but owed $3.9 million dollars in liabilities. During his appearance in U.S. Bankruptcy Court that December, Cipolletti claimed that he did not owe Discovery Tours any money, when, as investigators say, he then knew he had indeed embezzled and had made false entries in the company's ledger.
The FBI opened its investigation into Discovery Tours, Inc. on June 14, 2018.
“Bilking customers in any line of business is appalling, and more so, as a business executive entrusted to provide memorable educational experiences for children and teens,” said FBI Cleveland Special Agent in Charge Gregory Nelsen in a statement. “Today’s sentence reflects the comprehensive investigative work of the FBI, and together with our federal, state, and local partners, highlights our commitment to uncover corrupt business dealings.”