News Summary
A former employee of Kinsley Construction has been charged with stealing nearly $100,000 from the company. Kathryn Khuc is accused of misappropriating funds over an extended period. The investigation revealed unauthorized transactions made into an account unrelated to the company. Khuc faces multiple felony counts and has been released on bail following her arrest. The case raises concerns about financial oversight and internal controls within corporate practices.
Kinsley, Pennsylvania – Former Employee Faces Charges for Theft of Nearly $100,000
The city of Kinsley, Pennsylvania, is the site of a significant financial misconduct case involving a former employee of Kinsley Construction. Kathryn Khuc, 44, of Red Lion, has been formally charged with stealing approximately $95,584 from the company, according to authorities. The Pennsylvania State Police filed the charges on July 31, 2025, after an investigation uncovered evidence that Khuc engaged in misappropriating company funds over an extended period.
Details of the Charges and Arrest
Khuc faces multiple serious criminal counts, including 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. Following her arrest, she was arraigned and released the next day on a $100,000 unsecured bail. The preliminary hearing is scheduled for August 15, 2025, and she is represented by legal counsel from Steve Rice Law.
Scope of the Alleged Theft
The alleged theft totals nearly $96,000 and involves a series of unauthorized transactions believed to have been sent from Kinsley Construction’s accounts. The money was purportedly diverted into a bank account not associated with the company. Investigators discovered 10 suspicious transactions shortly after her termination, which had been sent to a bank account linked to a business called Sai Gon Cafe in Lancaster County.
Employment Background and Financial Role
Khuc was employed by Kinsley Construction from December 2012 through December 2025. She last held the position of senior controller of financial systems, a role that involved preparing financial transaction logs using the company’s banking records. After her departure, management uncovered that she failed to complete these logs for the last two years of her employment, raising concerns about possible discrepancies.
Investigation Findings and Suspicious Transactions
While reviewing her financial activities, company executives identified 10 transactions that appeared irregular. These transactions, although initially labeled as routine payments to health insurance providers Highmark and pharmacy benefits manager Express Scripts, were found to include invoice numbers that did not match any valid records from these companies. Both Highmark and Express Scripts verified they had no knowledge of the payments, indicating potential fraud.
Bank Account Searches and Related Evidence
The investigation extended to Khuc’s personal financial accounts. A search warrant revealed a bank account linked to Sai Gon Cafe, a family-owned business operated by Khuc and her husband in Manheim Township. The cafe has been operational since 2004, and prior to the alleged thefts, its account had a negative balance in April 2024. Police report that Khuc used the cafe’s bank account for various business-related payments, including supplies, rent, and payroll, which may have been part of the money diverted from her employer.
Timeline and Next Steps
Authorities first contacted Khuc on July 9, 2025, but she declined to participate in discussions about the investigation, citing legal representation. The Pennsylvania State Police continue to investigate the case, which remains ongoing. The company, Kinsley Enterprises, which manages the business assets of the Kinsley family and oversees Kinsley Construction, declined to comment on the case. The criminal case remains active as the legal process proceeds against Khuc.
Additional Notes
The York Daily Record has attempted to reach Khuc through her attorney and Kinsley Enterprises but has not received a response in recent days. The case highlights the potential risks of internal financial mismanagement and the importance of comprehensive oversight within corporate accounting practices.
Deeper Dive: News & Info About This Topic
HERE Resources
Additional Resources
- York Dispatch
- Wikipedia: Theft
- Lancaster Online
- Google Search: financial fraud case
- PennLive
- Encyclopedia Britannica: Legal Issue
- WGAL**
- Google News: Kinsley Enterprises news
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