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Former Employee Charged with Theft from Kinsley Construction

Desk with financial documents highlighting corporate investigation

News Summary

Kathryn Khuc, a former senior controller at Kinsley Construction, has been charged with stealing nearly $96,000 from the company. The alleged theft involved unauthorized transactions during her employment, leading to multiple felony counts against her. Authorities discovered irregularities after executives contacted the police. Khuc’s legal representation has declined to comment as she prepares for her upcoming preliminary hearing.

Kinsley, PA – Former Employee Charged with Theft of Nearly $100,000

Kathryn Khuc, 44, of Red Lion, Pennsylvania, has been formally charged with stealing approximately $95,583.51 from her former employer, Kinsley Construction. The charges, filed by Pennsylvania State Police, were announced on July 31, 2025, in Springfield Township, and Khuc was arraigned the following day.

Details of the Charges and Bail

Khuc faces multiple criminal counts, including 10 felony counts of knowingly receiving property derived from an illegal act, 10 counts of theft by unlawful taking, and 10 counts of receiving stolen property. She was released on a $100,000 unsecured bail on August 1, 2025.

Allegations of Theft and Investigation Timeline

The alleged theft involved funds taken from Kinsley Enterprise, Inc., a prominent construction company operating in York County, which manages assets for the Kinsley family and oversees Kinsley Construction. The Pennsylvania State Police report that police were initially contacted about the theft on April 8, 2025, by executives at Kinsley Construction.

Employment Background and Discovery of Irregularities

Khuc had been employed at Kinsley since December 2012, with her most recent role as senior controller of financial systems from 2023 until her termination in December 2025. Her responsibilities included preparing bank transaction logs. Following her departure, management uncovered that she had failed to complete this financial log for the last two years of her employment.

Suspicious Transactions and Bank Records

During the investigation, authorities identified 10 suspicious transactions directed to a bank account not associated with Kinsley. These transactions appeared to be routine payments to entities such as Highmark and Express Scripts, but the invoices attached listed invalid numbers. Both companies confirmed that they had no records of any payments linked to those invoice numbers.

Bank Search and Connection to Khuc’s Other Business

A search warrant revealed that a bank account belonging to Khuc was associated with Sai Gon Cafe, a business located on Manheim Pike in Lancaster County, which her family operates since 2004. The cafe is allegedly owned by Khuc and her husband.

Financial Activities and Business Use of Funds

Before the alleged payments from Kinsley, the cafe’s account had a negative balance as of April 2024. Investigators believe Khuc used the cafe’s account to make payments related to business supplies, rent, and payroll, potentially masking the misappropriated funds.

Legal Proceedings and Statements

Police attempted to contact Khuc on July 9, 2025, but she declined to discuss the investigation, stating she was represented by an attorney. Her preliminary hearing is scheduled for August 15, 2025. She is being represented by Steve Rice Law.

Ongoing Response and Lack of Comment

As of Tuesday afternoon, efforts to reach Khuc through her attorney or Kinsley Enterprises have not yielded any responses. No public comments have been issued by the company or Khuc regarding the case.

Background Context

Kinsley Enterprises is recognized as a leading construction company within York County, overseeing assets and operations of the Kinsley family. Grand jury investigations and internal audits often occur in cases involving financial misconduct, especially involving senior employees with access to company funds.

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STAFF HERE VIRGINIA BEACH WRITER
Author: STAFF HERE VIRGINIA BEACH WRITER

VIRGINIA BEACH STAFF WRITER The VIRGINIA BEACH STAFF WRITER represents the experienced team at HEREVirginiaBeach.com, your go-to source for actionable local news and information in Virginia Beach, Virginia Beach City, 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 Virginia Beach Neptune Festival, East Coast Surfing Championship, and the American Music Festival. Our coverage extends to key organizations like the Virginia Beach Chamber of Commerce and Visit Virginia Beach, plus leading businesses in tourism and defense that power the local economy such as the Virginia Beach Convention Center and Northrop Grumman. As part of the broader HERE network, we provide comprehensive, credible insights into Virginia's dynamic landscape.

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