A member of the Fairfax County School Board in Virginia has been sued by a local flight school on accusations that he embezzled $175,000 from the company for personal expenses.
The lawsuit filed against Kyle McDaniel, also a secretary and treasurer of the flight school Blue Label Aviation, alleges he used a company credit card for entertainment, personal expenses and campaign-related expenses, according to Fox 5 DC.
McDaniel was caught and paid some of the money back, but then continued to embezzle more funds, the lawsuit alleges.
He is accused of embezzling $175,000 from the flight school and spending the money on strip clubs, family vacations and other luxuries and using the money to subsidize his campaign for office.
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Blue Label Aviation claims McDaniel used his position at the company to access its credit cards and bank accounts.
In June, company CEO Timothy Fischer confronted McDaniel with $120,000 of improper charges. McDaiel confessed to using the money and paid back $50,000.
In December, Fischer learned that McDaniel had “expanded his use of the company’s credit cards and bank accounts for his personal expenses” and charged $160,000 in personal expenses.
McDaniel was confronted again in January and was given the opportunity to resign in exchange for giving up his shares in the company and giving back his company credit cards, the lawsuit says. McDaniel responded that he wanted time to consult a lawyer, but more unauthorized charges were made, resulting in McDaniel’s termination.
“Fischer thereafter continued to observe that new, non-business-related charges were being made to the company credit card,” the lawsuit alleges.
The lawsuit is asking for $175,000 as well as punitive damages of $350,000 and for McDaniel to return his corporate credit cards and remove himself from company bank accounts.
“This is an ongoing business dispute between my former business partner and myself,” McDaniel said in a statement to Fox 5 DC. “I’m going to let this play out in the courts where I intend to prevail, and not in the press.”
“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,” he continued.
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Fairfax County Public Schools said it has been made aware of a 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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