News Summary
Kathryn Khuc, a former senior controller at Kinsley Construction, faces multiple felony charges for allegedly embezzling $95,583.51 from the company. The Pennsylvania State Police filed charges after an internal review revealed suspicious transactions linked to her personal bank account. Khuc, who worked for Kinsley from 2012 until her termination, is now under investigation as authorities examine the financial oversight at the firm. The case raises important concerns about internal controls and trust in financial operations within corporations.
Red Lion, Pennsylvania — Kathryn Khuc, a 44-year-old former employee of Kinsley Construction, has been charged with stealing nearly $100,000 from the company. Pennsylvania State Police filed the theft charges on July 31, 2025, which comprise 10 felony counts for knowledge that property is proceeds of an illegal act, 10 counts of theft by unlawful taking, and 10 counts of receiving stolen property.
According to police reports, Khuc allegedly embezzled a total of $95,583.51 from Kinsley Enterprise, Inc., a significant construction firm in York County that manages the business assets of the Kinsley family, including Kinsley Construction. The company first reported the theft to authorities on April 8, 2025, after a review of financial logs raised red flags regarding Khuc’s transactions.
Khuc worked for Kinsley Construction from December 2012 until her termination in December 2025, holding the position of senior controller of financial systems between 2023 and 2025. In this role, her responsibilities included preparing a bank transaction log. However, after her termination, management discovered that Khuc had not completed a financial log for the last two years, leading to concerns about irregularities in the company’s finances.
During internal investigations, management uncovered 10 suspicious transactions that had been sent to a bank account not affiliated with Kinsley. These transactions appeared to be routine payments to major service providers, Highmark and Express Scripts, but the payments were accompanied by incorrect invoice numbers suggesting that the funds were sent out properly. Upon verification, both Highmark and Express Scripts reported that they had no record of the payments connected to the invoices provided by Khuc.
Following the discoveries, authorities executed a search warrant on Khuc’s bank accounts, which revealed an account linked to the Sai Gon Cafe located in Lancaster County. The cafe is claimed to be owned by Khuc and her husband and has operated as a family business since 2004. Notably, prior to the first alleged fraudulent payment from Kinsley’s accounts, the cafe’s bank account had a negative balance as of April 2024. The investigation indicated that Khuc may have used the account to manage payments for cafe supplies, rent, and payroll.
Police made contact with Khuc on July 9, 2025, but she elected not to engage in conversation regarding the investigation, indicating that she had legal representation. She was arraigned on August 1, 2025, and subsequently released on $100,000 unsecured bail. Khuc is being represented by Steve Rice Law, and a preliminary hearing has been scheduled for August 15, 2025.
The Kinsley family and its business have been significant contributors to construction projects throughout York County, and the allegations against Khuc have raised concerns among employees and clients. The company has not commented publicly on the ongoing investigation, and attempts to reach Khuc through her attorney as well as Kinsley Enterprises have gone unanswered.
As the legal proceedings unfold, the case illuminates broader issues of financial oversight within companies of all sizes. Organizations may need to reevaluate their internal controls to prevent similar incidents of embezzlement and ensure that trust and transparency are maintained in financial operations.
Deeper Dive: News & Info About This Topic
HERE Resources
Additional Resources
- York Dispatch
- Wikipedia: Theft
- Lancaster Online
- Google Search: financial fraud case
- PennLive
- Encyclopedia Britannica: Legal Issue
- WGAL**
- Google News: Kinsley Enterprises news
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.
