News Summary
A woman from Red Lion, Pennsylvania, has been charged with 30 felony counts for allegedly embezzling over $95,000 from Kinsley Construction. The investigation revealed fraudulent transactions and misuse of company funds, predominantly funneled into her personal business, Sai Gon Cafe. Following her arrest, she was released on unsecured bail, and further legal proceedings are scheduled to determine her responsibility in the case.
Red Lion, Pennsylvania — Woman Faces 30 Felony Charges for Alleged Embezzlement Over $95,000
Kathryn Mary Khuc, 44, of Red Lion, Pennsylvania, has been formally charged with 30 felony counts related to alleged thefts exceeding $95,000 from her former employer, Kinsley Construction. The criminal case alleges that Khuc, who worked at Kinsley Construction for more than 12 years, orchestrated a series of fraudulent transactions over a period of several months. Her employment with the construction firm ended in December 2024.
Discovery of Alleged Theft
The allegations surfaced in April 2025 when the company’s Chief Financial Officer (CFO) identified irregularities concerning bank transactions. Specifically, the CFO noted that Khuc had not completed the required bank transaction log for two years, prompting an internal review. Subsequently, investigators uncovered suspicious activity following her termination, including unauthorized transactions between April 5, 2024, and December 6, 2024, involving a Fulton Bank account not associated with Kinsley Construction. This account was outside the company’s usual banking platform, M&T Bank.
Investigation and Evidence
Bank records obtained through a search warrant revealed multiple deposits of over $10,000 each from Kinsley Construction into Khuc’s Fulton Bank account. These transactions included payments to personal credit card companies and the Internal Revenue Service (IRS). During the investigation, authorities discovered that Khuc had altered the bank account information used for these transactions, circumventing standard financial controls.
The suspicious payments were connected to two companies with which Kinsley maintains regular business, Highmark and Express Scripts. When questioned about an April 5, 2024, transaction, Highmark confirmed that the invoice number associated with the payment was invalid, and they had no record of receiving such funds. This discrepancy indicated potential misuse of company funds.
Connection to Local Business and Personal Use
Further investigation revealed that the Fulton Bank account belonged to the Sai Gon Cafe, a business located in Lancaster County owned by Khuc and her husband. According to bank records, the cafe’s account was in a negative balance before receiving deposits from Kinsley’s accounts. The funds sent to the cafe were reportedly used to cover various expenses, including rent and payroll, supporting the allegation that the stolen funds were diverted for personal use.
Legal Proceedings and Charges
Khuc faces 10 counts each of theft, receiving stolen property, and knowledge that the property is proceeds of an illegal act. The charges stem from her alleged involvement in diverting company funds into accounts associated with her personal business and using the money to cover personal expenses.
Following her arrest, Khuc was released on $100,000 unsecured bail on August 1, 2025. An unsecured bail allows her to remain free without posting collateral, as she is released on her personal recognizance. A preliminary hearing in her case is scheduled for August 15, 2025, where the case will be formally reviewed and further proceedings outlined.
Additional Details
The investigation points to Khuc’s ownership of the Sai Gon Cafe as a key element in the case, given that the cafe’s account previously had a negative balance before receiving payments from Kinsley’s accounts. Prosecutors allege that the funds were used to cover expenses such as rent and wages, with the intent to conceal the source of the money.
Khuc’s employment with Kinsley Construction officially ended in December 2024 after internal audits and investigations into her financial activities surfaced. The company has not issued any public statements but has confirmed that the matter is now under legal review.
Authorities, including the Pennsylvania State Police, continue to investigate the full scope of the transaction history and Khuc’s possible involvement in broader financial misconduct. The case remains ongoing, with legal proceedings set to determine her accountability and the potential return of stolen funds.
Deeper Dive: News & Info About This Topic
HERE Resources
Realtor Pleads Guilty to $1.7 Million Wire Fraud Scheme
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 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.
