News Summary
A woman from Red Lion, Pennsylvania, has been charged with 30 felony counts for allegedly stealing over $95,000 from Kinsley Construction. Kathryn Mary Khuc, who worked as a senior controller, faces serious accusations after an investigation revealed irregularities in bank transactions and funds being redirected to a personal business account. Authorities are now questioning the full extent of the misconduct surrounding this case, which highlights the importance of financial oversight within organizations.
Red Lion, Pennsylvania – Woman Charged with Multiple Felonies for Alleged Theft of Over $95,000 from Kinsley Construction
A 44-year-old woman from Red Lion has been formally charged with 30 felony counts related to an alleged scheme that resulted in the theft of more than $95,000 from her former employer, Kinsley Construction. The accused, Kathryn Mary Khuc, was employed at the company for over a decade before her employment was terminated in December 2024.
Details of the Alleged Theft
Khuc held the position of senior controller of financial systems during her last two years at Kinsley Construction. The suspicious activities came to light in April 2025, when the company’s chief financial officer (CFO) discovered prolonged gaps in the bank transaction records, notably the absence of a bank transaction log for two years.
After her termination, further investigation uncovered numerous questionable transactions that took place between April 5, 2024, and December 6, 2024. These transactions involved funds being transferred to a bank account at Fulton Bank, which was not affiliated with Kinsley Construction, a company that typically manages its finances through M&T Bank.
Irregularities in Transactions and Bank Records
An audit log revealed that Khuc had altered the bank account information associated with the transactions. Notably, the suspicious payments involved two companies with which Kinsley Construction frequently deals—Highmark and Express Scripts. When the company’s CFO inquired about a transaction on April 5, 2024, Highmark confirmed that the invoice number linked to that payment was invalid and that they had no record of any such payment.
The Pennsylvania State Police obtained a search warrant to investigate Khuc’s Fulton Bank account, which led to the discovery of multiple deposits exceeding $10,000, originating from Kinsley Construction. The bank records also showed payments made to various credit card companies and the IRS, raising concerns over potential misuse of funds.
Legal Proceedings and Charges
Khuc faces 10 counts each of theft, receiving stolen property, and knowledge that the property is proceeds of an illegal act. She was released on $100,000 unsecured bail on August 1, 2025. An unsecured bail allows her release without submitting collateral, based on her promise to appear in court.
A preliminary hearing in her case is scheduled for August 15, 2025. Khuc’s legal team has indicated her intention not to participate in an interview with authorities.
Connection to the Cafe and Additional Context
Further investigation revealed that the bank account at Fulton Bank, linked to Khuc, belonged to Sai Gon Cafe, a business in Lancaster County that Khuc and her husband own. The cafe’s account was previously in a negative balance before it began receiving payments from Khuc’s internal company accounts. These payments were reportedly used for various operational costs, including rent and payroll expenses.
Khuc’s employment with Kinsley Construction ended in December 2024 after the alleged irregularities were discovered. The ongoing investigation aims to clarify the full extent of the financial misconduct and identify how the stolen funds were utilized, with authorities focusing on whether other criminal activities were involved.
As the legal process continues, Khuc remains out on bond while authorities prepare for her upcoming court appearance. The case highlights the importance of internal oversight and timely auditing of financial activities within organizations to prevent such incidents.
Deeper Dive: News & Info About This Topic
HERE Resources
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
Author: STAFF HERE WASHINGTON DC
WASHINGTON DC STAFF WRITER The WASHINGTON DC STAFF WRITER represents the experienced team at HEREWashingtonDC.com, your go-to source for actionable local news and information in Washington, DC, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and regional news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the National Cherry Blossom Festival, Kennedy Center Honors, and the Washington Auto Show. Our coverage extends to key organizations like the Greater Washington Board of Trade and Destination DC, plus leading businesses in government contracting and technology that power the local economy such as Lockheed Martin and Amazon. As part of the broader HERE network, we provide comprehensive, credible insights into the dynamic landscape of the Washington metropolitan area.
