Strips Clubs & Campaign Funds: Fairfax County School Board Member Embezzled $175K: Lawsuit

LOUDON COUNTY, VA — A Fairfax County School Board member is accused in a lawsuit of embezzling and misappropriating $175,000 from his former employer and spending the money on non-work expenses, including strip clubs and his political campaign.

Kyle McDaniel is an at-large board member for Fairfax County Public Schools. Last month, Blue Label Aviation Inc., headquartered in Leesburg, filed a civil complaint against him in Loudon County.

McDaniel was the company’s secretary and treasurer, as well as the CEO of a subsidiary named Commonwealth Aviation Services LLC, according to the complaint, published in full by FOX 5 DC.

He was confronted in July after around $120,000 was uncovered in unauthorized charges for personal travel, meals, entertainment and campaign expenses, and he confessed and paid back roughly $50,000, the lawsuit said.

In January, he was confronted again after the company discovered about $160,000 in misappropriated funds and credit card transactions for family vacations, meals, groceries, strip club visits and more, according to the complaint, which said he was given a chance to resign without paying back the money.

McDaniel asked for a week to have the resignation agreement reviewed by a lawyer, but new non-business charges surfaced on a company credit card and he was terminated, the lawsuit said. He responded to news of his termination by taking the resignation offer, according to the complaint, and his resignation was accepted by shareholders Feb. 13.

Blue Label Aviation is seeking $350,000 in damages, the lawsuit said.

McDaniel, whose school board term ends in 2027, told FOX 5 through a statement released by a spokesperson that he would “let this play out in the courts where I intend to prevail, and not in the press.”

Fairfax County Public Schools told the outlet in a statement that: “We respect the legal process and will refrain from commenting further at this time.”