Blue Label Aviation filed a lawsuit last month accusing Kyle McDaniel of embezzling $175,000, FOX 5 reported. McDaniel worked as secretary and treasurer of the Leesburg flight school. He began his term as an at-large board member for Fairfax County Public Schools in January.
In court documents obtained by FOX 5, Blue Label alleges that McDaniel spent the money on strip clubs as well as to subsidize his campaign for office. Blue Label’s CEO, Timothy Fisher, confronted McDaniel last June about $120,000 in improper charges. McDaniel confessed and paid the company back $50,000.
Then, in December, Fischer discovered that McDaniel had “expanded his use of the company’s credit cards and bank accounts for his personal expenses.”
In January, McDaniel was given the opportunity to resign in exchange for giving up his shares in the company and returning his company credit cards, according to the lawsuit. Credit card transactions allegedly included family vacations, meals, groceries, strip club visits, and more. McDaniel said he wanted time to consult a lawyer, but more unauthorized charges were made, and Blue Label terminated his employment.
Blue Label Aviation is seeking $175,000 as well as punitive damages, or $350,000. McDaniel, whose school board term ends in 2027, told FOX 5 through a statement released by a spokesperson that: “This is an ongoing business dispute between my former business partner and myself. I’m going to let this play out in the courts where I intend to prevail, and not in the press.”
Fairfax County Public Schools told FOX 5 in a statement: “We have been made aware of a civil lawsuit filed against School Board Member Kyle McDaniel. 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.”
Feature image, Studio_East/stock.adobe.com
