Former Controller Charged with Embezzling from Construction Firm

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Desk with financial documents highlighting corporate investigation

Red Lion, Pennsylvania, August 6, 2025

News Summary

Kathryn Khuc, a former controller at Kinsley Construction, has been charged with stealing nearly $100,000 from the company. The Pennsylvania State Police filed multiple felony counts against her, including theft and receiving stolen property. The investigation revealed discrepancies in financial transactions, leading to the discovery of suspicious payments misrepresented as routine expenses. Khuc has been released on bail and faces a preliminary hearing to determine if the case will proceed.

Red Lion, Pennsylvania

Kathryn Khuc, a 44-year-old former employee of Kinsley Construction, has been charged with stealing nearly $100,000 from the company. The charges were officially filed by the Pennsylvania State Police in Springfield Township on July 31, 2025. Khuc faces serious allegations that include ten felony counts of knowledge that property is proceeds of an illegal act, ten counts of theft by unlawful taking, and ten counts of receiving stolen property.

Following the filing of charges, Khuc was arraigned and released on $100,000 unsecured bail on August 1, 2025. The total amount that authorities allege she misappropriated from Kinsley Enterprise, Inc. stands at $95,583.51.

According to reports, Kinsley Enterprises is a prominent construction firm in York County, managing the business assets of the Kinsley family, including Kinsley Construction. The investigation into Khuc’s actions began after executives at Kinsley Construction alerted the police on April 8, 2025, regarding discrepancies in financial transactions.

Khuc was employed by Kinsley Construction for over a decade, from December 2012 until her termination in December 2025. Her last position at the company was senior controller of financial systems from 2023 to 2025. Her responsibilities included preparing a bank transaction log. However, following her departure, it was discovered that Khuc reportedly failed to complete the financial log for the last two years of her employment.

Management’s investigation uncovered ten suspicious transactions that had been sent to a bank account not linked to Kinsley. These transactions were misrepresented as routine payments to Highmark and Express Scripts, but upon validation, both companies confirmed that the invoice numbers associated with the payments were invalid and that no record of these payments existed.

A search warrant executed on Khuc’s bank accounts revealed one account belonging to the Sai Gon Cafe in Lancaster County, allegedly owned by Khuc and her husband. The cafe, located on Manheim Pike in Manheim Township, has been operating as a family-owned business since 2004. Notably, the account for the cafe showed a negative balance in April 2024 shortly before the first alleged payments from Kinsley accounts.

According to police disclosures, Khuc is accused of using the cafe’s account to cover payments for business supplies, rent, and payroll. After the investigation began, police contacted Khuc on July 9, 2025; however, she refused to discuss the matter, stating she had retained legal counsel.

A preliminary hearing for Khuc is set for August 15, 2025, wherein the court will determine if there is enough evidence to proceed with the case. Khuc is currently being represented by Steve Rice Law. Efforts by media outlets to reach Khuc through her attorney or Kinsley Enterprises for further comments have been unsuccessful as of Tuesday afternoon.

Key Charges Against Kathryn Khuc

  • Ten felony counts of knowledge that property is proceeds of an illegal act
  • Ten counts of theft by unlawful taking
  • Ten counts of receiving stolen property

Background on Kinsley Enterprises

  • Major construction company headquartered in York County
  • Oversees business assets of the Kinsley family
  • Has been in operation for decades

Key Dates

  • April 8, 2025 – Police notified about the alleged theft
  • July 31, 2025 – Charges filed against Khuc
  • August 1, 2025 – Arraignment and bail release
  • August 15, 2025 – Preliminary hearing scheduled

Potential Consequences

If convicted, Khuc could face severe penalties under the laws regarding theft and financial fraud. Felony convictions can lead to significant prison time and restitution requirements.

Frequently Asked Questions

What were the total losses attributed to Khuc?

The total amount allegedly stolen from Kinsley Enterprises is $95,583.51.

What is Khuc’s former position at Kinsley Construction?

Khuc served as the senior controller of financial systems from 2023 to 2025.

When is Khuc’s preliminary hearing scheduled?

The preliminary hearing is set for August 15, 2025.

What business is linked to Khuc?

Khuc is linked to Sai Gon Cafe, a family-owned restaurant in Lancaster County.

Feature Details
Defendant Kathryn Khuc
Age 44
Charges Theft amounting to nearly $100,000
Position Senior Controller of Financial Systems
Company Kinsley Enterprises, Inc.
Alleged Theft Amount $95,583.51
Arraignment Date August 1, 2025
Preliminary Hearing Date August 15, 2025

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STAFF HERE PHILADELPHIA WRITER
Author: STAFF HERE PHILADELPHIA WRITER

PHILADELPHIA STAFF WRITER The PHILADELPHIA STAFF WRITER represents the experienced team at HEREPhiladelphia.com, your go-to source for actionable local news and information in Philadelphia, Philadelphia County, 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 state 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 Mummers Parade, Philadelphia Flower Show, and Thanksgiving Day Parade. Our coverage extends to key organizations like the Greater Philadelphia Chamber of Commerce and United Way of Greater Philadelphia, plus leading businesses in telecommunications, food services, and healthcare that power the local economy such as Comcast, Aramark, and Children's Hospital of Philadelphia. As part of the broader HERE network, we provide comprehensive, credible insights into Pennsylvania's dynamic landscape.

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