Former Controller Charged with Embezzling from Construction Company

Categories: National Construction NewsNews

Investigation into financial discrepancies raises concerns.

News Summary

Kathryn Khuc, a former senior controller at Kinsley Construction, faces felony charges for allegedly embezzling nearly $100,000 from the company. After discrepancies in financial logs were discovered, an investigation revealed fraudulent transactions disguised as legitimate payments. Khuc was terminated from her role in December and is now out on bail pending a preliminary hearing. This case raises significant financial oversight concerns within corporate environments.

Red Lion, PA — Kathryn Khuc, a 44-year-old former employee of Kinsley Construction, has been charged with stealing nearly $100,000 from the company, according to officials from the Pennsylvania State Police. The charges, filed on July 31, 2025, include 10 felony counts of knowledge that property is proceeds of an illegal act, 10 counts of theft by unlawful taking, and 10 counts of receiving stolen property.

The total amount alleged to have been taken from Kinsley Enterprise, Inc., a significant construction company in York County, is $95,583.51. Khuc was employed at Kinsley from December 2012 until her termination in December 2025, most recently serving as the senior controller of financial systems from 2023 to 2025.

Following her termination, Kinsley management contacted police on April 8, 2025, after discovering discrepancies in financial logs prepared by Khuc. As part of her role, she was responsible for maintaining a bank transaction log. However, it was found that she failed to complete this log for the last two years of her employment.

Investigators identified 10 suspicious transactions that were routed to a bank account not associated with Kinsley Construction. These transactions were initially presented as routine payments to Highmark and Express Scripts but were later identified as fraudulent. Both Highmark and Express Scripts confirmed that the invoice numbers associated with these payments were invalid, and they had no records of receiving those amounts.

Authorities executed a search warrant for Khuc’s bank accounts, leading them to one connected to the Sai Gon Cafe in Lancaster County, which is reportedly owned by Khuc and her husband. The cafe, located on Manheim Pike in Manheim Township, has operated as a family-owned business since 2004. Records indicated that prior to the first alleged misuse of Kinsley funds, the cafe’s account had experienced a negative balance as of April 2024.

Authorities suspect that Khuc used this cafe account to cover various business expenses, including supplies, rent, and payroll. Following the initial investigation, police reached out to Khuc on July 9, 2025. However, she declined to discuss the matter, opting instead to consult with a lawyer.

On August 1, 2025, Khuc was arraigned and released on $100,000 unsecured bail. A preliminary hearing is scheduled for August 15, 2025. Khuc is being represented by Steve Rice Law.

This case highlights significant concerns over financial oversight in corporate environments and raises questions about employment practices regarding financial roles within companies. As Kinsley Enterprises oversees the financial assets of the Kinsley family and has a notable presence in the construction sector, the alleged actions of Khuc jeopardize that integrity. Executives at Kinsley Construction are now tasked with reinforcing their financial systems to prevent similar occurrences in the future.

The York Daily Record reached out to Khuc through her attorney and Kinsley Enterprises for further comments but has not received a response as of the latest updates.