Fairfax County School Board member Kyle McDaniel faces an embezzlement lawsuit from his former employer, who claims he spent company funds on entertainment, vacations, and campaign expenses while serving in a position of public trust.
Quick Takes
- Kyle McDaniel allegedly used his position as an officer at Blue Label Aviation to embezzle $175,000 through unauthorized credit card charges.
- The lawsuit claims McDaniel spent company funds on personal expenses including entertainment, family vacations, and campaign costs.
- McDaniel initially admitted to $120,000 in unauthorized charges and repaid about $50,000 before additional charges were discovered.
- Blue Label Aviation is seeking $175,000 in damages, $350,000 in punitive damages, and McDaniel’s removal from company accounts.
- McDaniel, whose school board term runs until 2027, plans to fight the allegations in court.
School Board Member Faces Serious Embezzlement Allegations
Kyle McDaniel, a member of the Fairfax County School Board in Virginia, is being sued by his former employer, Blue Label Aviation, for allegedly embezzling $175,000. According to the lawsuit, McDaniel used his positions as secretary, treasurer, and CEO of a subsidiary to gain access to company credit cards and bank accounts. The aviation company claims McDaniel then used these financial resources for unauthorized personal expenses, including entertainment, family vacations, and his own political campaign expenses.
The allegations against McDaniel are particularly concerning given his role overseeing a school system with responsibility for education funds and policy. The lawsuit reveals how McDaniel allegedly abused his position at Blue Label Aviation while simultaneously serving in a position of public trust on the school board. His term on the Fairfax County School Board is set to continue until 2027, although he was reportedly terminated from his position at Blue Label Aviation and took a resignation offer.
Escalating Financial Misconduct and Failed Resolution
Court documents reveal that McDaniel initially confessed to approximately $120,000 in unauthorized charges and had repaid about $50,000 to the company. However, in December, Blue Label Aviation discovered an additional $160,000 in personal expenses allegedly charged by McDaniel. When confronted with these findings, the company offered McDaniel an opportunity to resign in January in exchange for relinquishing his shares and company credit cards.
Instead of accepting the company’s offer, McDaniel allegedly continued making unauthorized charges, and he was eventually fired. The legal action follows months of escalating financial impropriety, according to the lawsuit. Blue Label Aviation is now seeking $175,000 in damages, $350,000 in punitive damages, the return of all corporate credit cards, and McDaniel’s removal from company bank accounts through the civil lawsuit filed in Fairfax County Circuit Court.
School District Response and McDaniel’s Defense
Fairfax County Public Schools has acknowledged the lawsuit but has taken a neutral stance on the allegations against McDaniel. The school district issued a brief statement recognizing the ongoing legal matter but declined to comment further. “We understand that this is an ongoing business and legal dispute. We respect the legal process and will refrain from commenting further at this time,” the district stated in response to media inquiries about the situation.
For his part, McDaniel has characterized the lawsuit as a business dispute rather than criminal misconduct. He has expressed his intention to fight the allegations in court rather than through public statements. Despite the serious nature of the claims and the significant financial penalties being sought, McDaniel has indicated he plans to continue serving on the school board while the legal process unfolds.
