Discovery Tours Exec Accused Of Embezzling $600K

MAYFIELD VILLAGE, OH — An executive for a Mayfield Village business has been accused of money laundering and embezzling $600,000 from his company, the Department of Justice announced.

Joseph Cipolletti, of Hudson, was indicted by a federal grand jury on charges of wire fraud, money laundering, bank fraud and making a false statement. Cipoletti was the vice president of Discovery Tours, which offers educational trips for grade school and high school students.

“This individual is a typical con man,” said Michael O’Malley, Cuyahoga County Prosecutor . “He took money from parents and never intended on fulfilling his obligations.”

Discovery Tours took students to Washington, D.C., Chicago, New York City and other locations via coach bus. The tours included transportation, hotel accommodations, meals, sightseeing admissions and security. Cipoletti's job included managing Discovery Tours' finances, cash withdrawals, general ledger entries, and other accounting functions.

From June 2014 to May 2018, Cipoletti diverted payments intended for these educational trips, court documents said. He used the money for home renovations and cars, prosecutors said. Overall, Cipoletti is accused of embezzling more than $600,000 from Discovery Tours.

To aid his scheme, Cipoletti made multiple false entries in the Discovery Tours general ledger, claiming embezzled funds as trip-related expenses, forging an email to a hotel vendor claiming the business suffered a $230,000 loss due to a hacked account and more, prosecutors said.

To conceal his actions, Cipoletti took out high-interest loans, which eventually led to Discovery Tours filing for bankruptcy, prosecutors said.

“The fraud perpetrated by Mr. Cippoletti stole money from hardworking families and school districts. The scheme deprived students of annual trips that have become a tradition and provide a lifetime of memories,” Special Agent in Charge Eric Smith said .

The indictment said Discovery Tours abruptly shuttered in May 2018 and filed for bankruptcy. Student trips to Washington, D.C. were canceled for dozens of schools across Ohio and more than 5,000 families lost money they had previously paid for trip fees, court documents said.

“When these families paid for a trip, fraud wasn’t on the itinerary,” Ohio Attorney General Dave Yost said. “This business owner didn’t keep his word, so now his next destination will be the courthouse.”