The budget chair of a beleaguered $4 billion school system spent years pulling off a premeditated con to steal two airplanes worth $1.5 million, a new lawsuit filing alleges.
Kyle McDaniel, a member of Virginia’s Fairfax County School Board, was accused by his private-sector employer of using corporate credit cards to spend $150,000 on personal expenses, strip clubs, and his school board campaign, according to a lawsuit first reported by The Daily Wire earlier this month.
Now, that employer, Blue Label Aviation, added in court documents obtained by The Daily Wire that it has since discovered that McDaniel’s alleged fraud was significantly worse. It outlined methodical, years-long financial fraud that raises questions about how the all-Democrat school board could continue to let McDaniel oversee the finances of one of America’s largest school systems.
FCPS this month resorted to enlisting children to beg for more money, telling them the school system is in a financial crisis, has already cut all non-essential services, and that if the county doesn’t steer unprecedented amounts of money to the schools, children will suffer. It gave them an activist “toolkit” to pressure the leaders who disburse funding to the school system.
The amended complaint said that McDaniel owned an aviation company called Commonwealth Aviation Services. In March 2023, McDaniel struck a deal with the owner of another company, Aero Elite, to merge them into a new company called Blue Label. Virtually all of Commonwealth’s value came from the fact that it owned two planes, leading it to be valued at $1.5 million for purposes of the merger. But just before the deal went through, McDaniel secretly stripped its assets, changing the ownership of the planes to a different entity and essentially selling Blue Label an empty shell, the complaint says.
“As a direct and proximate result of McDaniel’s fraud in the inducement, the shareholders of Aero Elite, now shareholders of the Plaintiff, were duped into issuing stock to McDaniel and his father for essentially nothing, and the plaintiff was therefore damaged in the amount of $1,500,000.00,” the amended complaint said.
“McDaniel made fraudulent misrepresentations about the ownership of the aircraft which was a material fact and formed the basis of the merger. McDaniel secretly re-registered the aircraft into phony companies while negotiating the terms of the merger, knowing that the FAA registration process would take many months to complete and be listed on the FAA registry,” it continued.
Just before the deal went through, McDaniel used the Federal Aviation Administration’s database to re-register two Piper Archer airplanes to entities called N1463T LLC and N555AZ LLC – companies that did not even exist, it said. More than a year later, after Blue Label executives confronted McDaniel for separately allegedly using his corporate credit cards for huge sums of personal luxuries, McDaniel retroactively formed the LLCs “to match the names of the phony entities that he had registered the said aircraft to” and “listed his home address as the registered address.”
According to Virginia records, the LLCs were incorporated on February 9, 2025, shortly before the lawsuit was filed and just after Blue Label CEO Timothy Fisher confronted McDaniel on January 22, at which point “the defendant confessed” and said he “wanted a week” to have a lawyer review whether he would accept Fisher’s demands that he resign and turn over his corporate credit cards.
“McDaniel then started attempting to sell the aircraft to unknowing third parties. McDaniel’s actions constitute multiple acts of fraud, conversion of company assets and fraudulent misrepresentations,” it said.
Last week, Blue Label made a motion for a temporary injunction preventing McDaniel “from selling, transferring, conveying, re-registering, pledging, or encumbering the aircraft assets until a trial.”
Kyle McDaniel
McDaniel ran with the endorsement from the Democratic Party, which he secured after claiming to be bisexual and attracting an early endorsement by a gay-rights group — despite being married to a woman and having children. He previously positioned himself as a Republican, and also knocked a Republican off the school board by running as an “independent,” serving as a spoiler.
He told voters that his aviation work was directly relevant to the school board job, answering the question, “Why should voters trust you?” with, “In my career field, aviation, there is zero tolerance for dishonesty because it can get people hurt. I bring this same approach to public service: I do not tolerate dishonesty.” He did not return a request for comment for this story.
McDaniel is an at-large member of the school board, representing 1.6 million people — twice as many as a congressman. He came in third in the race for three at-large seats in 2023.
Saundra Davis, a Republican now running for the Virginia House of Delegates, came in fourth in the school board race, meaning she would have been on the school board if McDaniel were not in the race. Davis told The Daily Wire that “it’s clear that this situation goes far beyond a personal or business dispute. If the details are accurate, they indicate a deliberate effort to mislead others in a high-stakes transaction, which is deeply troubling.”
She said one-party rule gave rise to a lack of accountability.
“At a minimum, Kyle McDaniel should be removed as chair of the $4 billion Fairfax County public school budget committee — though I’m not holding my breath, she said. “It is imperative that voters in Fairfax County begin to apply logic over emotion when choosing their elected officials. Blindly voting straight down a sample ballot is not the path to meaningful change in our county.”
The initial lawsuit said McDaniel was repeatedly caught billing personal expenses totaling more than $150,000 to his corporate credit card, including a local strip club, a strip club in New Orleans — where the school board traveled for a National School Board Association conference — and campaign expenses.
It said McDaniel confessed and repaid part of the funds, then did it again, only to admit it again and then do it again. The company’s board met to approve his resignation, but McDaniel refused to cooperate with removing his name from corporate bank accounts, the suit said. McDaniel also deleted all of his work emails and performed other “suspicious activity,” it added.
[#item_full_content]
[[{“value”:”
The budget chair of a beleaguered $4 billion school system spent years pulling off a premeditated con to steal two airplanes worth $1.5 million, a new lawsuit filing alleges.
Kyle McDaniel, a member of Virginia’s Fairfax County School Board, was accused by his private-sector employer of using corporate credit cards to spend $150,000 on personal expenses, strip clubs, and his school board campaign, according to a lawsuit first reported by The Daily Wire earlier this month.
Now, that employer, Blue Label Aviation, added in court documents obtained by The Daily Wire that it has since discovered that McDaniel’s alleged fraud was significantly worse. It outlined methodical, years-long financial fraud that raises questions about how the all-Democrat school board could continue to let McDaniel oversee the finances of one of America’s largest school systems.
FCPS this month resorted to enlisting children to beg for more money, telling them the school system is in a financial crisis, has already cut all non-essential services, and that if the county doesn’t steer unprecedented amounts of money to the schools, children will suffer. It gave them an activist “toolkit” to pressure the leaders who disburse funding to the school system.
The amended complaint said that McDaniel owned an aviation company called Commonwealth Aviation Services. In March 2023, McDaniel struck a deal with the owner of another company, Aero Elite, to merge them into a new company called Blue Label. Virtually all of Commonwealth’s value came from the fact that it owned two planes, leading it to be valued at $1.5 million for purposes of the merger. But just before the deal went through, McDaniel secretly stripped its assets, changing the ownership of the planes to a different entity and essentially selling Blue Label an empty shell, the complaint says.
“As a direct and proximate result of McDaniel’s fraud in the inducement, the shareholders of Aero Elite, now shareholders of the Plaintiff, were duped into issuing stock to McDaniel and his father for essentially nothing, and the plaintiff was therefore damaged in the amount of $1,500,000.00,” the amended complaint said.
“McDaniel made fraudulent misrepresentations about the ownership of the aircraft which was a material fact and formed the basis of the merger. McDaniel secretly re-registered the aircraft into phony companies while negotiating the terms of the merger, knowing that the FAA registration process would take many months to complete and be listed on the FAA registry,” it continued.
Just before the deal went through, McDaniel used the Federal Aviation Administration’s database to re-register two Piper Archer airplanes to entities called N1463T LLC and N555AZ LLC – companies that did not even exist, it said. More than a year later, after Blue Label executives confronted McDaniel for separately allegedly using his corporate credit cards for huge sums of personal luxuries, McDaniel retroactively formed the LLCs “to match the names of the phony entities that he had registered the said aircraft to” and “listed his home address as the registered address.”
According to Virginia records, the LLCs were incorporated on February 9, 2025, shortly before the lawsuit was filed and just after Blue Label CEO Timothy Fisher confronted McDaniel on January 22, at which point “the defendant confessed” and said he “wanted a week” to have a lawyer review whether he would accept Fisher’s demands that he resign and turn over his corporate credit cards.
“McDaniel then started attempting to sell the aircraft to unknowing third parties. McDaniel’s actions constitute multiple acts of fraud, conversion of company assets and fraudulent misrepresentations,” it said.
Last week, Blue Label made a motion for a temporary injunction preventing McDaniel “from selling, transferring, conveying, re-registering, pledging, or encumbering the aircraft assets until a trial.”
Kyle McDaniel
McDaniel ran with the endorsement from the Democratic Party, which he secured after claiming to be bisexual and attracting an early endorsement by a gay-rights group — despite being married to a woman and having children. He previously positioned himself as a Republican, and also knocked a Republican off the school board by running as an “independent,” serving as a spoiler.
He told voters that his aviation work was directly relevant to the school board job, answering the question, “Why should voters trust you?” with, “In my career field, aviation, there is zero tolerance for dishonesty because it can get people hurt. I bring this same approach to public service: I do not tolerate dishonesty.” He did not return a request for comment for this story.
McDaniel is an at-large member of the school board, representing 1.6 million people — twice as many as a congressman. He came in third in the race for three at-large seats in 2023.
Saundra Davis, a Republican now running for the Virginia House of Delegates, came in fourth in the school board race, meaning she would have been on the school board if McDaniel were not in the race. Davis told The Daily Wire that “it’s clear that this situation goes far beyond a personal or business dispute. If the details are accurate, they indicate a deliberate effort to mislead others in a high-stakes transaction, which is deeply troubling.”
She said one-party rule gave rise to a lack of accountability.
“At a minimum, Kyle McDaniel should be removed as chair of the $4 billion Fairfax County public school budget committee — though I’m not holding my breath, she said. “It is imperative that voters in Fairfax County begin to apply logic over emotion when choosing their elected officials. Blindly voting straight down a sample ballot is not the path to meaningful change in our county.”
The initial lawsuit said McDaniel was repeatedly caught billing personal expenses totaling more than $150,000 to his corporate credit card, including a local strip club, a strip club in New Orleans — where the school board traveled for a National School Board Association conference — and campaign expenses.
It said McDaniel confessed and repaid part of the funds, then did it again, only to admit it again and then do it again. The company’s board met to approve his resignation, but McDaniel refused to cooperate with removing his name from corporate bank accounts, the suit said. McDaniel also deleted all of his work emails and performed other “suspicious activity,” it added.
“}]]
