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Kyle McDaniel is set to return to a leadership role on the Fairfax County School Board’s budget committee even as litigation accusing him of misappropriating company funds remains active.
The board is expected to appoint McDaniel as the committee’s vice chair at its Thursday meeting. He previously chaired the panel for 10 months before stepping down in April 2025.
The opening follows former Braddock District representative Rachna Sizemore Heizer’s resignation and December election to the Fairfax County Board of Supervisors. Sully District representative Seema Dixit moved from vice chair to chair of the budget committee.
McDaniel’s anticipated appointment comes nearly four weeks after a Loudoun County Circuit Court judge granted his demurrer to a complaint filed by Blue Label Aviation, a company he partly owned. The ruling allowed the company to revise its allegations rather than ending the case.
McDaniel said the ruling showed the company’s embezzlement and fraud claims were legally baseless and maintained that he had “never stolen from BLA.”
He has filed a separate $2 million claim against the company, alleging that his former business partners tried to reclaim shares belonging to him and his father without compensation. McDaniel characterized the conflict as a dispute over corporate control and the value of the company’s stock.
Blue Label Aviation filed an amended complaint on Feb. 27, 2026, one week after the court’s Feb. 20 ruling.
Attorney James P. Magner, who represents the company, said the lawsuit was neither dismissed nor resolved. He said the revised filing presents the allegations as conversion, a civil claim, instead of embezzlement, which is addressed under criminal law.
The company’s original complaint, filed in March 2025, alleged that McDaniel used its credit card and bank account for personal expenses while serving as treasurer and secretary. Court documents accused him of making $120,000 in unauthorized charges, including expenses for family vacations and visits to strip clubs. The complaint alleges that a 2024 audit placed the total at $160,000.
It remains unclear whether school board or county officials conducted their own review of the allegations. School board Chair Sandy Anderson did not respond to a request for comment before publication.
McDaniel has served as an at-large school board member since 2024.
The board is also scheduled to approve committee assignments for Tom Dannan, who won a March 3 election to replace Sizemore Heizer as the Braddock District representative.
After being sworn in ahead of the 7 p.m. meeting, Dannan is expected to join the comprehensive planning and audit committees. The board also plans to name him as its liaison to the Advisory Committee for Students with Disabilities and Fairfax County’s Successful Children and Youth Policy Team.