Woman Charged with 30 Felonies for Embezzlement

Red Lion, Pennsylvania – Kathryn Mary Khuc, a 44-year-old woman from Red Lion, faces serious legal trouble as she is charged with 30 felonies connected to the alleged theft of more than $95,000 from Kinsley Construction. Khuc, who worked for the company for over a decade, served as the senior controller of financial systems for the last two years of her employment before being terminated in December 2024.

The extent of the alleged theft was uncovered in April 2025 when Kinsley’s chief financial officer noticed that Khuc had not completed a necessary bank transaction log for two consecutive years. Following her termination, a subsequent investigation revealed a series of suspicious transactions between April 5 and December 6, 2024, which led to concerns about funds being misappropriated.

Investigators discovered that several deposits were transferred to a Fulton Bank account, a financial institution not typically used by Kinsley Construction, which relies on M&T Bank. An audit log indicated that Khuc had altered the bank account information for these questionable transactions. The payments were linked to invoices from two companies, Highmark and Express Scripts, which are known clients of Kinsley.

Upon further inquiry regarding an invalid transaction from April 2024, Highmark confirmed that they had no record of any related payment. This prompted Pennsylvania State Police to obtain a search warrant to delve deeper into Khuc’s Fulton Bank account. The results indicated that Khuc received multiple deposits exceeding $10,000 originating from Kinsley accounts, which were subsequently used for various personal expenses, including payments to credit card companies and taxes owed to the IRS.

Khuc was released on $100,000 unsecured bail on August 1, 2025, which allowed her to leave without posting collateral. A preliminary hearing in her case is scheduled for August 15, 2025. Each of the felony charges includes counts for theft, receiving stolen property, and being aware that the property in question was the result of illegal activity.

Further investigations revealed that the Fulton Bank account in question belonged to the Sai Gon Cafe, a business co-owned by Khuc and her husband. Notably, the cafe’s bank account had a negative balance prior to receiving the payments from Kinsley, with those funds reportedly being allocated for expenses like rent and payroll.

Overview of Charges

• Kathryn Mary Khuc charged with 30 felonies.
• Alleged theft amounting to over $95,000 from Kinsley Construction.
• Held position as senior controller of financial systems.
• Termination occurred in December 2024.

Timeline of Events

• Employment at Kinsley Construction: December 2012 – December 2024.
• Suspicious transactions identified: April – December 2024.
• Termination of employment: December 2024.
• Charges filed: April 2025.
• Preliminary hearing scheduled: August 15, 2025.

Key Details

• Released on $100,000 unsecured bail.
• Investigations ongoing by Pennsylvania State Police.
• Fulton Bank account linked to personal business operations.

Background Context

Kinsley Construction is a reputable firm that has operated within the area, contracting various services and maintaining relationships with several companies like Highmark and Express Scripts. The deception highlighted in this case underscores the necessity for robust oversight of financial activities at all levels within corporations, particularly those handling large sums of money. Investigations of this nature are imperative in maintaining ethical business practices and safeguarding stakeholders’ interests.

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