Former Kinsley Construction Employee Charged with Theft

News Summary

Kathryn Khuc, a former senior controller at Kinsley Construction, has been charged with stealing nearly $100,000 from the company. The Pennsylvania State Police filed charges that include multiple felony counts of theft, stemming from discrepancies found in financial records. Investigators discovered unauthorized transactions linked to a family-owned cafe operated by Khuc. Kinsley executives reported the theft after noticing financial irregularities following Khuc’s termination. The case raises serious concerns about the company’s internal financial controls and is set for preliminary hearings in the coming weeks.

Red Lion, PA – A former employee of Kinsley Construction, Kathryn Khuc, 44, has been charged with stealing nearly $100,000 from the company. The Pennsylvania State Police filed the charges on July 31, 2025, which include 10 felony counts related to property obtained through illegal means, 10 counts of theft by unlawful taking, and 10 counts of receiving stolen property. The total amount alleged to have been taken stands at $95,583.51.

Khuc was employed at Kinsley Construction from December 2012 until her termination in December 2025, with her most recent position as senior controller of financial systems from 2023 to 2025. Her responsibilities included preparing a bank transaction log for the company. The theft allegations surfaced when the management recognized discrepancies in financial records following her departure.

The initial report to the police regarding the theft was made by Kinsley Construction executives on April 8, 2025. After a thorough review of financial documents, management discovered that Khuc had failed to complete essential financial logs for the past two years. Additionally, they identified 10 suspicious transactions that were sent to an unauthorized bank account, ostensibly misrepresented as routine payments to Highmark and Express Scripts. However, both companies confirmed to Kinsley that the invoice numbers provided were invalid and that they had no record of such payments being processed.

Following these discoveries, the police executed a search warrant on Khuc’s bank accounts, uncovering a specific account belonging to the Sai Gon Cafe, a family-owned business operated by Khuc and her husband in Lancaster County. Located on Manheim Pike in Manheim Township, the cafe has been in operation since 2004. Notably, prior to the first unauthorized payments from Kinsley’s accounts, the cafe’s bank account reportedly had a negative balance in April 2024. It was found that Khuc used the cafe’s account to cover expenses such as business supplies, rent, and payroll.

Khuc was arraigned on August 1, 2025, and released on $100,000 unsecured bail. She has retained legal representation from Steve Rice Law. The preliminary hearing for Khuc is set for August 15, 2025. When contacted by police on July 9, 2025, Khuc declined to elaborate on the investigation, indicating that she had legal counsel.

Kinsley Enterprises, the parent company of Kinsley Construction, is a significant player in the construction industry in York County and manages the business assets of the Kinsley family. The allegations against Khuc raise serious concerns regarding internal financial controls within the company, particularly in the finance department where she held a senior role.

The case continues to develop as anticipation builds toward the upcoming preliminary hearing. The outcome could have implications not only for Khuc but also for Kinsley Enterprises, as it seeks to mitigate the damages caused by the alleged embezzlement.

As of Tuesday afternoon, attempts to reach Khuc through her attorney regarding the charges have not yielded any responses from either her or Kinsley Enterprises.

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Additional Resources

• York Dispatch
• Wikipedia: Theft
• Lancaster Online
• Google Search: financial fraud case
• PennLive
• Encyclopedia Britannica: Legal Issue
• WGAL**
• Google News: Kinsley Enterprises news