News Summary

Kathryn Mary Khuc, a senior controller at Kinsley Construction, has been charged with 30 felonies for allegedly stealing over $95,000 from her employer. The investigation revealed significant financial discrepancies and suspicious transactions over two years. Authorities are examining her bank records and ties to her cafe business, which may further complicate her case. A preliminary hearing is scheduled as the investigation continues.

Red Lion Woman Charged with 30 Felonies for Allegedly Stealing Over $95,000 from Kinsley Construction

Kathryn Mary Khuc, a 44-year-old resident of Red Lion, has been charged with 30 felony counts related to the alleged theft of over $95,000 from her employer, Kinsley Construction. Khuc’s tenure at the construction company lasted for over a decade, from December 2012 until her termination in December 2024. She served as the senior controller of financial systems during the last two years of her employment.

The charges came to light in April 2025 when Kinsley Construction’s chief financial officer discovered significant discrepancies in financial documentation. Specifically, Khuc had not completed a bank transaction log for two years, raising immediate concerns regarding her financial management practices.

Following her termination, a deeper investigation revealed a series of suspicious transactions believed to have occurred between April 5, 2024, and December 6, 2024. These transactions involved funds being sent to a Fulton Bank account not affiliated with Kinsley Construction, which typically uses M&T Bank for its banking needs. It was noted that Khuc had taken measures to alter the bank account information for these transactions.

Further scrutiny unveiled ties between the suspicious transactions and two companies, Highmark and Express Scripts, which routinely conduct business with Kinsley Construction. When Kinsley’s CFO raised an inquiry regarding an April 5 transaction, Highmark confirmed that the associated invoice number was invalid and that no record of the payment existed on their end.

To facilitate the investigation, Pennsylvania State Police obtained a search warrant to probe Khuc’s Fulton Bank account. The retrieved bank records allegedly indicated multiple deposits exceeding $10,000 from Kinsley Construction to Khuc’s account. Reports suggest that these funds were funneled towards various financial obligations, including payments to credit card companies and the IRS.

Despite the ongoing investigation, Khuc’s legal representation has expressed no interest in participating in interviews with the state police. Currently, Khuc faces 10 felony counts for theft, receiving stolen property, and possessing property known to be derived from illegal activities.

On August 1, 2025, Khuc was released on $100,000 unsecured bail, allowing her to remain free on her personal recognizance without the need for collateral. A preliminary hearing has been scheduled for August 15, 2025, where further details of the case are expected to be revealed.

Investigations into the suspicious transactions also uncovered that the Fulton Bank account was linked to the Sai Gon Cafe in Lancaster County, owned by Khuc and her husband. An alarming discovery highlighted that the cafe’s bank account appeared to have a negative balance prior to starting to receive payments from Kinsley’s accounts, raising questions surrounding the financial management at the cafe.

Payments originating from Kinsley Construction were reportedly directed to the cafe to cover various costs such as rent and payroll, indicating a potential misuse of company funds. The implications of these findings have cast a shadow over Khuc’s professional career, leveraging both her role at Kinsley and her involvement with the restaurant business in Lancaster County.

The ramifications of Khuc’s actions have far-reaching effects, not just for her but also for Kinsley Construction and the various stakeholders involved. As the case moves forward, it remains to be seen what additional details will emerge, particularly during the upcoming preliminary hearing.

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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 MILWAUKEE WRITER

MILWAUKEE STAFF WRITER The MILWAUKEE STAFF WRITER represents the experienced team at HEREMilwaukee.com, your go-to source for actionable local news and information in Milwaukee, Milwaukee 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 Summerfest, Milwaukee Film Festival, and the Milwaukee Boat Show. Our coverage extends to key organizations like the Metropolitan Milwaukee Association of Commerce and Visit Milwaukee, plus leading businesses in manufacturing and brewing that power the local economy such as Harley-Davidson and MillerCoors. As part of the broader HERE network, we provide comprehensive, credible insights into Wisconsin's dynamic landscape.