News Summary
Kathryn Mary Khuc, a former senior controller at Kinsley Construction, faces 30 felony charges for allegedly stealing over $95,000 from the company. Investigations revealed suspicious transactions and misuse of funds, culminating in a search warrant for her Fulton Bank account. The case underscores serious concerns about financial ethics and accountability within corporate environments. A preliminary hearing is set, bringing more scrutiny to the allegations against Khuc and the financial practices at Kinsley.
Red Lion, Pennsylvania – Kathryn Mary Khuc, a 44-year-old resident of Red Lion, is facing serious legal troubles after being charged with 30 felonies for allegedly stealing over $95,000 from her former employer, Kinsley Construction. The charges come as a result of alleged financial misconduct that took place over a two-year period during her employment.
Khuc was employed by Kinsley Construction for a total of 12 years, serving as the senior controller of financial systems in her last two years with the company, up until December 2024. The alleged theft was uncovered in April 2025, when the company’s chief financial officer discovered that Khuc had failed to complete a bank transaction log for an entire two-year period.
After being terminated from Kinsley, investigations uncovered a series of suspicious transactions that occurred between April 5, 2024, and December 6, 2024. Evidence suggested that funds had been redirected to a Fulton Bank account not affiliated with Kinsley Construction, which primarily utilizes M&T Bank for its transactions. An audit log showed that Khuc had altered bank account information relevant to these transactions.
The investigation revealed further complexities as it identified transactions linked to two vendors, Highmark and Express Scripts, with which Kinsley regularly does business. In particular, when questioned about an April 5, 2024 transaction, Kinsley’s CFO discovered that Highmark had no record of the invoice number associated with that payment, raising multiple red flags.
Pennsylvania State Police became involved and obtained a search warrant to probe Khuc’s Fulton Bank account. The findings pointed to numerous deposits exceeding $10,000 from Kinsley Construction to Khuc’s account. These transfers were allegedly used to settle debts with various credit card companies and the Internal Revenue Service (IRS), indicating potential misuse of company funds.
In total, Khuc faces 10 felony charges each for theft, receiving stolen property, and knowingly receiving proceeds from illegal activities. Following her arrest, she was released on $100,000 unsecured bail on August 1, 2025. An unsecured bail permits the defendant’s release based on their personal promise to appear in court without the need to post collateral.
A preliminary hearing has been scheduled for August 15, 2025, where the details of the case will likely be further examined.
As the investigation continued, authorities uncovered that the Fulton Bank account used to receive the diverted funds was connected to the Sai Gon Cafe in Lancaster County, owned by Khuc and her husband. Notably, the cafe’s account had a negative balance before it began receiving payments from Kinsley Construction, further complicating the situation. The payments were purportedly utilized to cover various business expenses, including rent and payroll for the cafe.
Background checks revealed Khuc’s solid tenure at Kinsley Construction, where she held a senior position responsible for financial systems. Her abrupt departure in December 2024, following the discovery of the financial irregularities, has since raised numerous concerns regarding internal controls and trust in company processes.
With significant charges and a complex financial trail unfolding, this case highlights critical issues of financial ethics and accountability within corporate environments.
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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 CLEVELAND WRITER
CLEVELAND STAFF WRITER The CLEVELAND STAFF WRITER represents the experienced team at HERECleveland.com, your go-to source for actionable local news and information in Cleveland, Cuyahoga County, 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 the Cleveland International Film Festival, Rock & Roll Hall of Fame Induction Ceremony, and the Cleveland Air Show. Our coverage extends to key organizations like the Greater Cleveland Partnership and Destination Cleveland, plus leading businesses in manufacturing and healthcare that power the local economy such as Cleveland Clinic and Sherwin-Williams. As part of the broader HERE network, we provide comprehensive, credible insights into Ohio's dynamic landscape.
