Red Lion, Pennsylvania, August 7, 2025
News Summary
Kathryn Mary Khuc, a resident of Red Lion, faces 30 felony counts for allegedly stealing more than $95,000 from Kinsley Construction during her 12 years at the company. Investigations revealed unauthorized transactions directed to a personal bank account, raising concerns over financial oversight. After her termination, Khuc was released on $100,000 unsecured bail and will appear in court for a preliminary hearing.
Red Lion, Pennsylvania – Kathryn Mary Khuc, a 44-year-old resident of Red Lion, has been charged with 30 felonies, stemming from accusations that she allegedly stole over $95,000 from Kinsley Construction during her employment with the company. The charges include multiple counts of theft and receiving stolen property, along with knowledge that the property was acquired through illegal means.
Khuc was employed by Kinsley Construction for a total of 12 years, from December 2012 until her termination in December 2024. During the last two years of her tenure, she held the position of senior controller of financial systems at the firm. The alleged irregularities concerning her financial activities were unveiled in April 2025 when the company’s chief financial officer (CFO) noticed that Khuc had not been maintaining a bank transaction log for a significant period of two years.
Following her termination, an investigation revealed a series of suspicious transactions that occurred between April 5, 2024, and December 6, 2024. Funds were diverted to a Fulton Bank account, which did not align with Kinsley Construction’s primary banking partner, M&T Bank. The investigation indicated that Khuc had altered the bank account details for these transactions without proper authorization.
The unauthorized transactions were linked to payments for services rendered by companies with whom Kinsley conducts regular business, namely Highmark and Express Scripts. An inquiry by the CFO regarding a transaction from April was met with a response from Highmark, which indicated that the associated invoice was invalid, and no record existed for such a payment.
As part of the investigation, the Pennsylvania State Police were granted a search warrant to probe Khuc’s Fulton Bank account. The findings alleged that multiple deposits exceeding $10,000 had been funneled into Khuc’s account from Kinsley Construction. These transactions reportedly included payments to various credit card companies and tax obligations to the IRS.
Legal representation for Khuc has communicated to state authorities that they would not participate in interviews related to the case. Khuc currently faces 10 felony counts each for theft, receiving stolen property, and knowledge that the property was obtained illegally. She was granted release on $100,000 unsecured bail on August 1, 2025, meaning she was released based on personal recognizance and did not need to provide collateral to the court.
A preliminary hearing is set for August 15, 2025, where further proceedings regarding the case will take place. Investigative findings also showed that the Fulton Bank account in question belonged to Sai Gon Cafe, a restaurant in Lancaster County owned by Khuc and her husband. Notably, the cafe’s bank account had been in a negative balance prior to beginning to receive the funds originating from Kinsley accounts. Reports suggest that these funds were utilized for various operating expenses, including rent and payroll obligations for the cafe.
Key Details of the Case
- Defendant: Kathryn Mary Khuc
- Location: Red Lion, Pennsylvania
- Charges: 30 felony counts (10 for theft, 10 for receiving stolen property, 10 for knowledge of illegal proceeds)
- Total Alleged Theft: Over $95,000
- Employment Period: December 2012 – December 2024
- Bail Amount: $100,000 unsecured bail released on August 1, 2025
- Preliminary Hearing Date: August 15, 2025
Background Context
Kinsley Construction is a well-established firm with a reputation for providing services within the construction industry. The position of senior controller of financial systems is crucial, handling the oversight of company transactions and financial integrity. Theft within organizations can severely impact operations, leading to losses, damaged reputations, and mistrust among employees and clients.
Khuc’s case highlights the importance of stringent financial oversight and the potential for significant unlawful activity even within established companies. As investigations continue, more information regarding Khuc’s alleged financial misconduct will likely emerge, shaping the narrative around this unfolding legal matter.
FAQ Section
What are the charges against Kathryn Mary Khuc?
Kathryn Mary Khuc faces 30 felony counts, including 10 counts of theft, 10 counts of receiving stolen property, and 10 counts of knowing that the property was acquired through illegal means.
How much money is Khuc accused of stealing?
Khuc is accused of stealing over $95,000 from Kinsley Construction.
What is the bail amount for Khuc?
Khuc was released on $100,000 unsecured bail on August 1, 2025.
When is the preliminary hearing for Khuc?
The preliminary hearing is scheduled for August 15, 2025.
Deeper Dive: News & Info About This Topic
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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
