News Summary
Kathryn Khuc, a former senior controller at Kinsley Construction, has been charged with stealing nearly $100,000 from the firm. The Pennsylvania State Police filed multiple felony counts against Khuc, who allegedly misappropriated funds through fraudulent transactions. Despite her release on bail, the investigation highlights crucial financial oversight issues within the company. Kinsley Construction is now grappling with the implications of this incident as further legal proceedings unfold.
Red Lion, PA – Kathryn Khuc, a 44-year-old resident of Red Lion, has been charged with stealing nearly $100,000 from Kinsley Construction, a significant construction firm based in York County. The charges, filed by the Pennsylvania State Police in Springfield Township on July 31, 2025, accuse Khuc of multiple felony counts related to theft and receiving stolen property.
Khuc faces a total of 30 felony counts: 10 counts for knowledge that property is proceeds of an illegal act, 10 counts for theft by unlawful taking, and 10 counts for receiving stolen property. The total amount involved in the allegations is reported to be $95,583.51.
Following her arraignment, Khuc was released on $100,000 unsecured bail on August 1, 2025. A preliminary hearing is set to take place on August 15, 2025. She is currently represented by Steve Rice Law.
The investigation began on April 8, 2025, when executives at Kinsley Construction contacted the police regarding the suspected theft. Khuc was employed with Kinsley from December 2012 until her termination in December 2025, most recently holding the position of senior controller of financial systems from 2023 to 2025. Her responsibilities included preparing the bank transaction log, a task she allegedly failed to complete for her final two years of employment.
Upon reviewing financial records after Khuc’s departure, Kinsley management identified 10 suspicious transactions that supposedly originated from Kinsley’s accounts but were sent to a bank account that is not affiliated with the company. These transactions had been falsely categorized as routine payments to Highmark and Express Scripts, using invoice numbers that were later confirmed to be invalid by both companies.
Further investigation involved a search warrant executed on Khuc’s bank accounts, which revealed a connection to the Sai Gon Cafe in Lancaster County. This establishment is reportedly owned by Khuc and her husband and has been operating as a family-owned business since 2004. Notably, the cafe’s account had a negative balance as of April 2024, prior to the first unlawful payment from Kinsley’s accounts. Allegations suggest that Khuc utilized the cafe’s financial resources for various expenses, including business supplies, rent, and payroll.
On July 9, 2025, police attempted to contact Khuc regarding the ongoing investigation; however, she refused to engage, indicating that she had retained legal counsel. As the legal proceedings move forward, the case underscores issues related to financial oversight within companies and the potential for internal theft.
Kinsley Enterprises, the parent company of Kinsley Construction, is a significant presence in the construction sector of York County, managing the business assets of the Kinsley family. The incident has potentially far-reaching implications for the firm, both financially and reputationally, as it navigates through the repercussions of this theft.
As further updates emerge from the legal proceedings, the community and industry stakeholders remain watchful. Khuc’s case serves as a reminder of the critical need for stringent financial controls and transparency in business operations.
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Additional Resources
- York Dispatch
- Wikipedia: Theft
- Lancaster Online
- Google Search: financial fraud case
- PennLive
- Encyclopedia Britannica: Legal Issue
- WGAL**
- Google News: Kinsley Enterprises news
Author: STAFF HERE INDIANAPOLIS WRITER
INDIANAPOLIS STAFF WRITER The INDIANAPOLIS STAFF WRITER represents the experienced team at HEREIndianapolis.com, your go-to source for actionable local news and information in Indianapolis, Marion 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 the Indianapolis 500, Indy Jazz Fest, and the Indiana State Fair. Our coverage extends to key organizations like the Indy Chamber and Visit Indy, plus leading businesses in motorsports and healthcare that power the local economy such as Indianapolis Motor Speedway and IU Health. As part of the broader HERE network, we provide comprehensive, credible insights into Indiana's dynamic landscape.
