Woman Charged with Embezzling Over $95,000 from Employer

News Summary

A woman from Red Lion has been charged with 30 felonies for allegedly stealing over $95,000 from Kinsley Construction. Kathryn Mary Khuc, a former senior controller, manipulated financial transactions during her employment, diverting funds to a personal business account. The investigation revealed numerous suspicious transactions and a lack of internal controls. Khuc is currently awaiting trial after being released on bail.

Red Lion, Pennsylvania – A woman from Red Lion has been charged with 30 felonies linked to the alleged theft of over $95,000 from her former employer, Kinsley Construction. Kathryn Mary Khuc, 44, is facing serious legal consequences after her actions came to light in early April 2025, following the discovery of numerous suspicious financial transactions during her tenure at the construction firm.

Khuc was employed at Kinsley Construction for a total of 12 years, from December 2012 until her termination in December 2024. In her final two years with the company, she held the significant position of senior controller of financial systems, a role in which she was responsible for overseeing financial transactions and ensuring accuracy in financial reporting.

The suspicious activities emerged when Kinsley’s chief financial officer noted that Khuc had failed to complete a bank transaction log for a period of two years. After her dismissal, an internal review uncovered a series of questionable transactions that occurred between April 5, 2024, and December 6, 2024. These transactions involved funds being transferred to a Fulton Bank account not associated with Kinsley Construction, which typically operates its banking through M&T Bank.

An internal audit revealed that Khuc had altered the bank account information for these red flag transactions. Further investigations indicated that she had been involved in payments to two companies, Highmark and Express Scripts, with which Kinsley had established business relations. However, upon inquiry regarding a specific transaction from April 2024, Highmark confirmed the invoice was invalid and that there was no record of the associated payment.

Following these developments, the Pennsylvania State Police executed a search warrant for Khuc’s Fulton Bank account. The examination of bank records showed multiple deposits exceeding $10,000 from Kinsley, totaling over $95,000 in alleged theft. The records revealed that these transfers were linked to payments made to various credit card companies and the Internal Revenue Service, indicative of their potential misuse.

Khuc is now facing 10 felony counts each for theft, receiving stolen property, and knowledge that the property is proceeds of an illegal act. She was released on August 1, 2025, on $100,000 unsecured bail, meaning she will not need to provide collateral to remain free as she awaits further legal proceedings. A preliminary hearing in her case is scheduled for August 15, 2025.

Upon investigation, it was found that the Fulton Bank account in question was associated with Sai Gon Cafe, a business owned by Khuc and her husband located in Lancaster County. Before the alleged wrongful transfers began, the cafe’s bank account had reportedly been in a negative balance. Subsequently, payments from Kinsley were redirected to this account to cover various operational expenses such as rent and payroll, raising further suspicions about the transactions.

This case raises significant concerns regarding internal controls and oversight within corporate financial systems. As Khuc prepares to face trial, the implications of her actions may extend beyond her personal liability, potentially prompting a broader examination of Kinsley Construction’s financial practices and security measures.

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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