Red Lion Woman Charged with $95,000 Theft from Employer

Categories: National Construction NewsNews

A corporate office environment highlighting financial oversight issues.

News Summary

Kathryn Mary Khuc, a former senior controller at Kinsley Construction, has been charged with 30 felonies for allegedly stealing over $95,000 from the company. Investigations revealed she manipulated transactions, directed funds to a personal bank account, and used the money for personal expenses. The case raises serious concerns about internal financial controls within corporate environments. Khuc was released on bail and is awaiting a preliminary hearing.

Red Lion – A 44-year-old woman from Red Lion, Kathryn Mary Khuc, has been charged with 30 felonies related to the alleged theft of over $95,000 from Kinsley Construction, where she was employed for 12 years. The charges, which include 10 counts each of theft, receiving stolen property, and knowledge that the property is proceeds of an illegal act, surfaced following an investigation initiated by the company in April 2025.

Khuc worked as the senior controller of financial systems at Kinsley Construction from December 2012 until her termination in December 2024. The fraudulent activities reportedly occurred during her final two years in the role, particularly between April 5, 2024, and December 6, 2024. Kinsley Construction’s chief financial officer raised red flags when it was discovered that Khuc had not completed a bank transaction log for two consecutive years, prompting further scrutiny into her transactions.

After her termination, the CFO found suspicious transactions directed to a Fulton Bank account that was not associated with Kinsley Construction, which primarily conducts its banking with M&T Bank. An audit log revealed that Khuc had altered bank account information for the transactions, indicating potential misconduct. The transactions were linked to two companies, Highmark and Express Scripts, with which Kinsley routinely does business.

During an inquiry into a specific transaction from April 5, 2024, Highmark confirmed that the invoice number cited was invalid and that they had no record of receiving the payment. This lack of documentation further fueled suspicions of Khuc’s wrongdoing. Subsequent investigations by the Pennsylvania State Police led to a search warrant for her Fulton Bank account. Bank records allegedly showed multiple deposits exceeding $10,000 that originated from Kinsley’s accounts. Khuc is believed to have utilized these funds for various personal expenses, including payments to credit card companies and the IRS.

In addition to the serious allegations against her, Khuc’s attorney reportedly informed state police that they were not interested in participating in an interview regarding the case. Following her arrest, Khuc was released on $100,000 unsecured bail on August 1, 2025, meaning she was released on personal recognizance and did not need to provide collateral to the court. A preliminary hearing is scheduled for August 15, 2025, where the court will examine the evidence presented against her.

Further investigation revealed that the Fulton Bank account linked to the suspicious transactions belonged to Sai Gon Cafe in Lancaster County, which is co-owned by Khuc and her husband. Reports indicate that the cafe’s bank account had a negative balance prior to receiving funds transferred from Kinsley. The payments made to the cafe were allegedly funneled to cover a range of expenses, including rent and payroll.

This case highlights potential vulnerabilities in corporate financial systems and raises concerns about internal oversight within companies. As Khuc faces serious allegations of extensive theft, the outcome of her upcoming preliminary hearing may shed light on the adequacy of Kinsley Construction’s financial controls and the transparency of its operational practices.