Trial rescheduled in embezzlement case

Hudson man accused of taking $600K from Discovery Tours

The trial of a Hudson man accused of embezzling more than $600,000 from a company has been rescheduled.

The trial of a Hudson man accused of embezzling more than $600,000 from a company offering educational trips for students is now scheduled to begin Dec. 7.

Joseph A. Cipolletti, 45 was indicted in July by a federal grand jury on 18 charges. Those charges are wire fraud, eight counts of money laundering, eight counts of bank fraud and false statements under oath. Cipolletti was the vice president of the Mayfield Village-based Discovery Tours, according to the U.S. Attorney’s Office for the Northern District of Ohio.

Cipolletti’s trial was previously set to begin Oct. 21, but a continuance was granted by Northern District of Ohio Judge Pamela A. Barker earlier this month.

According to court records, Cipolletti’s attorney Lester S. Potash stated in an Oct. 8 motion that the defense and prosecutors “have and are engaged in discussions attempting to arrive, if possible, at a resolution of this matter.”

Potash stated in the motion, “additional time is needed to consult with the clients and review with the defendant the massive discovery as provided the undersigned by counsel for the government.”

A pretrial conference is scheduled for Oct. 27, according to court records.

Federal prosecutors allege that from June 2014 to May 2018, Cipolletti devised a scheme to divert payments intended for these trips for personal use.

He allegedly defrauded parents and other student trip purchasers, and embezzled funds meant for school trips to spend on items such as home renovations and personal vehicles. In total, he is alleged to have embezzled approximately $609,942 from the business.

Cipolletti is accused of taking “many actions to further the scheme,” including making multiple false entries in the Discovery Tours general ledger claiming embezzled funds were trip-related expenses, forging an email to a hotel vendor claiming that the business suffered a loss of $236,022.27 due to a hacked account, paying vendors for previous student trips with deposits from future trips, and obtaining high interest loans to conceal his actions. The high interest on these loans ultimately led to Discovery Tours’ eventual bankruptcy filing.

Discovery Tours abruptly ended operations on May 7, 2018. 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.

Several school districts in The News-Herald coverage area were affected, including Mentor, Riverside and Chardon schools.