Red Lion, Pennsylvania, August 7, 2025
News Summary
Kathryn Mary Khuc, a 44-year-old former senior controller at Kinsley Construction, is charged with 30 felonies for allegedly stealing over $95,000. The investigation began after financial discrepancies were noted. Held on $100,000 bail, her preliminary hearing is upcoming. The case underscores the importance of financial oversight in large organizations.
Red Lion, Pennsylvania – Kathryn Mary Khuc, a 44-year-old woman from Red Lion, has been charged with 30 felonies in connection with the alleged theft of over $95,000 from her employer, Kinsley Construction. The charges come following a detailed investigation prompted by financial irregularities discovered by the company’s chief financial officer.
Khuc worked for Kinsley Construction for 12 years, from December 2012 until her termination in December 2024. During her last two years at the company, she served as the senior controller of financial systems, a position that provided her access to sensitive financial operations. Allegations of theft were first uncovered in April 2025 when the company’s financial officer realized that Khuc had not completed a bank transaction log for an extended period of two years.
Upon her termination, Kinsley Construction conducted an internal review which identified numerous suspicious transactions that took place between April 5, 2024, and December 6, 2024. Investigations revealed that funds were transferred to a Fulton Bank account not affiliated with Kinsley Construction, which primarily utilizes M&T Bank for its banking needs. Following up on suspicious patterns, a detailed audit log indicated Khuc had altered the bank account information for these transactions.
The suspicious transactions were traced back to payments associated with two companies, Highmark and Express Scripts, both of which are regular business partners of Kinsley Construction. When queried by Kinsley’s CFO, Highmark confirmed that the invoice number related to an April 5, 2024, transaction was invalid, and they had no record of the payment.
In response to the findings, Pennsylvania State Police obtained a search warrant to examine Khuc’s Fulton Bank account. The investigation uncovered numerous deposits exceeding $10,000 from Kinsley Construction to her account, which were reportedly used to pay various expenses, including obligations to credit card companies and the IRS.
Khuc faces 10 felony counts each of theft, receiving stolen property, and knowledge that the property is proceeds of an illegal act. She was released on August 1, 2025, on $100,000 unsecured bail, which indicates that she did not need to provide collateral to the court for her release. A preliminary hearing is scheduled for August 15, 2025.
Further analysis of the Fulton Bank account revealed that it belonged to the Sai Gon Cafe, a business in Lancaster County owned jointly by Khuc and her husband. Reports indicate that the cafe’s bank account had a negative balance prior to it beginning to receive payments from Kinsley Construction. The funds transferred to the cafe were purportedly used to cover various operational expenses such as rent and payroll.
Key Details
- Accused: Kathryn Mary Khuc, Red Lion resident, 44 years old.
- Charges: 30 felonies related to theft estimated at over $95,000.
- Employment Duration: 12 years at Kinsley Construction.
- Position: Senior controller of financial systems.
- Investigation Start: April 2025, following irregularities in financial logs.
- Suspected Timeframe of Theft: April 2024 to December 2024.
Background Information
The case against Khuc highlights the significant trust and responsibility placed upon individuals in positions managing financial systems within large organizations. Kinsley Construction, which utilizes specific banking institutions for their operations, discovered discrepancies when errors in bank transaction logs were identified, prompting deeper inquiries. The response of Kinsley Construction illustrates the necessity for proactive auditing and review processes to safeguard against potential financial misconduct.
FAQ Section
What charges is Kathryn Mary Khuc facing?
Khuc is charged with 30 felonies, including theft and receiving stolen property.
How much money is alleged to have been stolen?
Over $95,000 is alleged to have been stolen from Kinsley Construction.
What position did Khuc hold at Kinsley Construction?
Khuc was the senior controller of financial systems at Kinsley Construction.
When did the investigation into Khuc begin?
The investigation began in April 2025 when irregularities in financial logs were discovered.
What is unsecured bail?
Unsecured bail means the individual is released on personal recognizance without needing to submit collateral to the court.
Summary of Key Features
| Feature | Details |
|---|---|
| Name | Kathryn Mary Khuc |
| Age | 44 |
| Charges | 30 felonies, theft exceeding $95,000 |
| Previous Position | Senior Controller of Financial Systems |
| Employment Duration | 12 years |
| Investigation Start Date | April 2025 |
| Preliminary Hearing Date | August 15, 2025 |
| Bail Status | $100,000 unsecured bail |
Deeper Dive: News & Info About This Topic
HERE Resources
New State Prison Construction Begins in Lincoln, Nebraska
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 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.
