News Summary
A woman in Pennsylvania has been charged with multiple felonies for allegedly embezzling over $95,000 from Kinsley Construction. Kathryn Mary Khuc, who served as the senior controller, was terminated after an investigation revealed unauthorized transactions to a personal account. The case raises significant concerns about financial oversight within the company, especially regarding the misuse of workplace funds for personal expenses. A preliminary hearing is scheduled to address the charges.
Red Lion, Pennsylvania – A 44-year-old woman is facing serious legal troubles after being charged with 30 felonies related to the alleged theft of over $95,000 from her former employer, Kinsley Construction. Kathryn Mary Khuc, who worked for the company for 12 years, held the position of senior controller of financial systems during her final two years prior to her termination in December 2024.
The alleged misconduct came to light in April 2025 when the chief financial officer of Kinsley Construction noticed that Khuc had failed to complete a bank transaction log for the past two years. Following her termination, an investigation revealed a series of suspicious transactions between April 5, 2024, and December 6, 2024, which led to the discovery of funds being redirected to a Fulton Bank account not associated with Kinsley Construction, a company that typically utilizes M&T Bank for its transactions.
An audit log indicated that Khuc had altered the bank account information to facilitate these transactions. Notably, the unauthorized transfers were linked to two companies, Highmark and Express Scripts, which are among the regular partners of Kinsley Construction. When inquiries were made regarding an April transaction, Highmark confirmed that the associated invoice was invalid, and they had no record of any such payment.
In the course of the investigation, the Pennsylvania State Police secured a search warrant to delve into Khuc’s Fulton Bank account. The investigation revealed multiple deposits exceeding $10,000 from Kinsley Construction to Khuc’s personal account. These records suggested that Khuc used the funds for various personal expenses, including payments to credit card companies and the Internal Revenue Service.
Khuc has been charged with 10 felony counts each of theft, receiving stolen property, and knowledge that the property is proceeds of an illegal act. Despite the gravity of these charges, Khuc was released on $100,000 unsecured bail on August 1, 2025, meaning she was released on personal recognizance without having to submit collateral to the court.
A preliminary hearing in Khuc’s case is scheduled for August 15, 2025, where further proceedings will take place. As the investigation unfolded, it was noted that the Fulton Bank account in question belonged to the Sai Gon Cafe located in Lancaster County, which is owned by Khuc and her husband. Reports indicate that this cafe’s bank account was previously in the negative before it started receiving payments from Kinsley Construction accounts.
The funds transferred to the cafe were reportedly utilized for several critical operational expenses, including employee payroll and rent, raising further concerns regarding the potential misuse of company funds. With Khuc’s employment with Kinsley Construction having ended in December 2024, questions are now being raised about the oversight and security measures in place at the company during her tenure.
The situation has drawn attention not only for the significant amount of money involved but also for the implications for workplace integrity in financial roles. As the legal process unfolds, the community and business sector will be watching closely to see how the case develops and what it may mean for future practices in financial accountability.
Deeper Dive: News & Info About This Topic
HERE Resources
Former Controller Charged with Embezzling Nearly $100,000
Additional Resources
- York Dispatch: Red Lion Woman Accused of Stealing More Than $95,000
- Wikipedia: Embezzlement
- York Daily Record: Red Lion Woman Charged with $100K Theft
- Google Search: Red Lion theft Kinsley Construction
- Fox43: Kathryn Khuc Arrested for Theft from Kinsley Construction
- Google Scholar: Corporate Fraud Internal Controls
- ABC7 Chicago: Chicago Crime Reports
- Encyclopedia Britannica: Theft
Author: STAFF HERE NEW YORK WRITER
NEW YORK CITY STAFF WRITER The NEW YORK CITY STAFF WRITER represents the experienced team at HERENewYorkCity.com, your go-to source for actionable local news and information in New York City, the five boroughs, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as New York Fashion Week, Macy's Thanksgiving Day Parade, and Tribeca Film Festival. Our coverage extends to key organizations like the Greater New York Chamber of Commerce and United Way of New York City, plus leading businesses in finance and media that power the local economy such as JPMorgan Chase, Goldman Sachs, and Bloomberg. As part of the broader HERE network, including HEREBuffalo.com, we provide comprehensive, credible insights into New York's dynamic landscape.
