That means a trip to Hawaii is off for band members at Southside high school in Fort Smith.
The travel agent admits he mishandled the funds and lost thousands of dollars.
Band director Steve K esner says steps are being taken to recoup the money.
"Our school district administration is looking into this, says Kesner, " The authorities, legal authorities are looking into it also as to how to proceed now."
About 300 band members, faculty and family members were planning to make the trip in June.
The band was scheduled to perform at Pearl Harbor and march in a parade.
The group still has about 44-percent of the money and will use those funds to make a trip to Orlando instead.