A member of the Fairfax County School Board in Virginia is facing a lawsuit from a local flight school, Blue Label Aviation, alleging that he embezzled $175,000 from the company for personal expenses.
According to a report by Fox 5 DC, the lawsuit names Kyle McDaniel, who also served as secretary and treasurer of Blue Label Aviation, and accuses him of using a company credit card for entertainment, personal expenses, and campaign-related expenditures.
The lawsuit claims that McDaniel’s alleged actions involved using his position at the company to gain access to its credit cards and bank accounts.
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Blue Label Aviation’s CEO, Timothy Fischer, reportedly confronted McDaniel in June about $120,000 in improper charges. McDaniel allegedly confessed to the misuse of funds and repaid $50,000.
However, the lawsuit further alleges that in December, Fischer discovered that McDaniel had “expanded his use of the company’s credit cards and bank accounts for his personal expenses” and charged an additional $160,000 in personal expenses.
McDaniel was confronted again in January and given the opportunity to resign in exchange for relinquishing his company shares and returning his company credit cards, the lawsuit states. After requesting time to consult with a lawyer, more unauthorized charges were allegedly made, leading to McDaniel’s termination.
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The lawsuit claims that “Fischer thereafter continued to observe that new, non-business-related charges were being made to the company credit card.”
Blue Label Aviation is seeking $175,000 in damages, as well as $350,000 in punitive damages. The lawsuit also demands the return of corporate credit cards and McDaniel’s removal from company bank accounts.
McDaniel provided a statement to Fox 5 DC, saying, “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.”
He added, “My focus has been and will remain on fully funding and supporting a public education system that’s responsive to the needs of our kids and community. I will not let this situation distract me from that.”
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Fairfax County Public Schools acknowledged that it is aware of the civil lawsuit against 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,” the district said in a statement to Fox 5 DC.
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