Former Vice President of Discovery Tours Sentenced to Five Years in Prison for Fraud and Money Laundering

CLEVELAND – Joseph A. Cipolletti, 48, of Hudson, Ohio, was sentenced on Thursday, April 20, 2023, to 60 months in prison by U.S. District Judge Pamela A. Barker after he pleaded guilty to an 18-count indictment that charged him with wire fraud, money laundering, bank fraud and false statements under oath in a bankruptcy proceeding.

“This defendant abused his position of trust by embezzling from $550,000 and $1.5 million from his family’s student travel company for his personal use,” said First Assistant U.S. Attorney Michelle M. Baeppler. “Student trips to Washington, D.C. were canceled for dozens of schools across Ohio and more than 5,000 families lost the money they had previously paid for trip fees. Today’s five-year prison sentence reflects his reprehensible conduct.”

“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. “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.”

According to court documents, Cipolletti was employed as Vice President of Discovery Tours, Inc., a business that offered educational trips for students to destinations such as Washington, D.C., Chicago, Illinois, New York City, New York, Columbus, Ohio, and Gettysburg, Pennsylvania. Court documents state that as Vice President, Cipolletti managed the organization’s finances, general ledger entries, accounts payable and accounts receivable. Cipolletti also had signature authority on Discovery Tours’ business bank accounts.

Court documents state that from June 2014 to May 2018, Cipolletti, as Vice President, 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.

In addition, on December 10, 2018, in the United States Bankruptcy Court for the Northern District of Ohio, Cipolletti knowingly made statements under oath in and in relation to his organization’s bankruptcy status. Cipolletti claimed that he did not owe his business any money when, in fact, and as he then knew, he had embezzled from his place of business and made false entries in the general ledger.

This case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Brian M. McDonough.