Former Kinsley Construction Employee Charged with Theft

News Summary

A former employee of Kinsley Construction has been charged with stealing nearly $100,000 from the company. Kathryn Khuc allegedly executed unauthorized transactions disguised as legitimate payments. The investigation revealed that Khuc failed to complete financial logs and misused funds from a restaurant she runs with her husband. She is facing ten felony counts and was released on bail as the legal process unfolds, raising concerns about financial oversight within the construction company.

Red Lion, PA – A former employee of Kinsley Construction has been charged with stealing almost $100,000 from the company. Kathryn Khuc, 44, has been accused of theft totaling $95,583.51, with the charges filed by Pennsylvania State Police in Springfield Township on July 31, 2025. Khuc faces ten felony counts related to the theft, including knowledge that property is proceeds of an illegal act, theft by unlawful taking, and receiving stolen property.

Following her arraignment on August 1, 2025, Khuc was released on $100,000 unsecured bail. She was employed at Kinsley Construction from December 2012 until her termination in December 2025, where she most recently held the position of senior controller of financial systems from 2023 to 2025.

The investigation into her actions began after Kinsley Construction executives contacted law enforcement on April 8, 2025, reporting suspicious financial activities within the company. Upon reviewing records, management found that Khuc had not completed a financial log for the previous two years. This failure was significant, as the log is essential for tracking and documenting company finances.

During the investigation, it was revealed that Khuc allegedly executed 10 unauthorized transactions that were disguised as routine payments to Highmark and Express Scripts. However, Kinsley executives discovered that the invoice numbers associated with these payments were invalid, as confirmed by both Highmark and Express Scripts. The validity of these payments prompted further scrutiny into Khuc’s financial activities.

A search warrant was obtained for Khuc’s bank accounts, leading to the discovery of an account reportedly associated with Sai Gon Cafe, a restaurant located on Manheim Pike in Manheim Township. This cafe is run by Khuc and her husband and has been a family-owned business since 2004. Further investigation showed that prior to the alleged theft, this bank account exhibited a negative balance in April 2024. It is claimed that Khuc utilized the cafe’s funds for various business expenses, including supplies, rent, and payroll.

On July 9, 2025, police reached out to Khuc regarding the investigation, but she declined to provide information, citing that she was represented by legal counsel. Currently, Khuc is being represented by Steve Rice Law, a legal firm, as she prepares for her forthcoming legal proceedings. A preliminary hearing has been scheduled for August 15, 2025, which will provide an opportunity for the court to evaluate the evidence against her.

Kinsley Enterprises, the parent company of Kinsley Construction, is a significant player in the construction industry within York County. It manages the business activities and assets of the Kinsley family, which includes several subsidiaries beyond Kinsley Construction. The company now finds itself entangled in a serious legal matter that highlights vulnerabilities in financial oversight and the necessity for stringent controls to prevent such incidents from occurring in the future.

As the legal process unfolds, both Kinsley Enterprises and the local community are watching closely, knowing that the outcomes of these charges could have substantial implications for the company and its employees. Efforts to reach Khuc through her attorney and representatives of Kinsley Enterprises have yet to yield a response.

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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.

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.

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