In this paper, we propose a novel technique for the inspection of high-density polyethylene (HDPE) pipes using ultrasonic sensors, signal processing, and deep neural networks (DNNs). Specifically, we propose a technique that detects whether there is a diversion on a pipe or not. The proposed model transmits ultrasound signals through a pipe using a custom-designed array of piezoelectric transmitters and receivers. We propose to use the Zadoff–Chu sequence to modulate the input signals, then utilize its correlation properties to estimate the pipe channel response. The processed signal is then fed to a DNN that extracts the features and decides whether there is a diversion or not. The proposed technique demonstrates an average classification accuracy of 90.3% (when one sensor is used) and 99.6% (when two sensors are used) on 34 inch pipes. The technique can be readily generalized for pipes of different diameters and materials.