News Summary
Kathryn Mary Khuc, a former financial controller, is accused of embezzling over $95,000 from Kinsley Construction through manipulated bank transactions. Her alleged misconduct went undetected for two years until an internal audit revealed the missing transaction logs. The investigation has resulted in multiple felony charges, including theft and receiving stolen property. As legal proceedings unfold, scrutiny intensifies around corporate financial oversight and potential internal fraud prevention measures.
Red Lion, PA – Kathryn Mary Khuc, a 44-year-old woman from Red Lion, is facing 30 felony charges related to an alleged theft of over $95,000 from her employer, Kinsley Construction. Khuc, who served as the senior controller of financial systems, is accused of manipulating bank transactions during her final two years with the company, culminating in significant financial irregularities.
Khuc was employed at Kinsley Construction for 12 years, from December 2012 until her termination in December 2024. The alleged misconduct came to light in April 2025 when the company’s chief financial officer noticed that Khuc had failed to complete the required bank transaction log for a span of two years. Following her dismissal, a deeper investigation uncovered several suspicious transactions dating between April 5, 2024, and December 6, 2024.
The investigation revealed that funds were directed to a Fulton Bank account that did not belong to Kinsley Construction, which typically conducts its banking with M&T Bank. Audit logs indicated that Khuc had changed the bank account information for transactions related to Kinsley’s business activities with two companies, Highmark and Express Scripts.
Upon inquiry about an April 5, 2024 transaction, Highmark confirmed that the invoice associated with the payment was invalid and that they had no record of receiving any such payment. This sparked further scrutiny and led to a search warrant being issued by the Pennsylvania State Police to examine Khuc’s Fulton Bank account.
The results of this investigation indicated numerous deposits exceeding $10,000 from Kinsley into Khuc’s bank account. These records showed funds being moved to various creditors, including payments for credit card bills and obligations to the IRS. Khuc’s counsel subsequently expressed a lack of interest in participating in the police interviews regarding the matter.
Currently, Khuc faces ten felony counts each for theft, receiving stolen property, and possessing an illegal act’s proceeds. She was granted release on August 1, 2025, after posting an unsecured bail of $100,000, which does not require her to furnish collateral. A preliminary hearing is set for August 15, 2025.
Investigations have also uncovered that the Fulton Bank account tied to Khuc belonged to the Sai Gon Cafe in Lancaster County, a business co-owned with her husband. Records indicated that prior to the suspicious transactions, the cafe’s bank account was in a negative balance. The payments that flowed into this account from Kinsley were reportedly utilized to cover various operational expenses such as payroll and rent.
This case highlights significant concerns regarding corporate financial oversight and the potential for internal fraud. It raises questions about the measures in place within companies to detect and prevent such deceitful activities. Furthermore, it serves as a reminder of the trust placed in financial officers and controllers who handle sensitive financial data and transactions.
The ongoing proceedings will bring to light more information regarding these allegations and their implications for Khuc and Kinsley Construction. As the legal process unfolds, the focus will remain on ascertaining the full extent of the alleged theft and any preventive measures that can be instituted in the future to protect businesses from similar occurrences.
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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 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.
