Watch CBS News

Group Of OC Parents Out Over $600K After Class Trip Organizers Cancel, File For Chapter 7 Bankruptcy

ORANGE COUNTY (CBSLA) — A group of Orange County families says a travel company took their money for a class trip that was canceled due to the coronavirus pandemic and won't give them even a partial refund.

Now, the families say there's not a lot they can do because the company is now filing for Chapter 7 bankruptcy.

Combined, the families said they are out hundreds of thousands of dollars after paying San Diego-based travel company L.E.A.D. USA to send their middle schoolers on a class trip.

"I would say it's in the neighborhood of $600,000 approximately," said Jennifer Baer

Baer paid $5,000 to L.E.A.D. USA for her twin daughters from spring view middle school to go on a six-day trip to New York and DC in June with 48 classmates.

But in April, L.E.A.D. sent a letter to parents, canceling the trip.

"In fact, our teachers were adamant that we will not be the ones to cancel," said Baer.

The letter went on to read that families had three options; They could go through travel insurance if they purchased it. They could apply a credit to another child for a future trip. Or they could get a 50% refund.

"It was hugely disappointing and quite honestly made a lot of us angry and upset at the approach," Baer said.

Sixty students at Saint Bonaventure signed up to attend an east coast trip in April at $3,000 each.

"The night before the children were supposed to hop on a red-eye flight, we got a cancellation notice from our school," said Mike Layman.

In response to the school's cancellation, L.E.A.D. sent a letter to parents saying they would get none of their money back.

"So parents actually called the airline to find out what happened to the money and what flight they were on, and come to find out the airlines refunded the money 100 percent," Layman said.

Parents of four other Orange County schools said they too haven't gotten any money back from L.E.A.D.

Vista view parent Mike Shuster paid $2,600 in cash.

"I recognize things happen and no one gets out of this for free. But to get no response at all," Mike Shuster said.

Now, some of the parents have gotten a letter from a San Diego-based attorney, saying L.E.A.D. is filing for Chapter 7 bankruptcy.

"The courts protect you with bankruptcy? She has over a half a million cash," said parent Alison Moriarty.

Dean Rallis, a bankruptcy attorney who isn't involved with this case, said, "Chapter 7 is not a good thing for these families. Chapter 7 is liquidation. The company is basically throwing up its hands and saying 'We can't take this any longer and we are closing our doors.'"

When CBSLA's Kristine Lazar reached out to L.E.A.D.'s attorney and owner, she didn't hear back.

View CBS News In
CBS News App Open
Chrome Safari Continue
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.