August 7, 2025

Woman Charged with 30 Felony Counts for Theft in Pennsylvania

here-intlog
August 7, 2025
7:28 am
Raleigh, NC

here-intlog
August 7, 2025
7:28 am
Raleigh, NC

News Summary

Kathryn Mary Khuc, a former senior controller at Kinsley Construction, has been charged with 30 felony counts for allegedly stealing over $95,000 from her employer. Her actions were uncovered during a financial audit that brought to light suspicious banking activity in the company’s financial records. Investigations revealed that Khuc’s bank account was linked to transactions involving her personal business, suggesting funds were misappropriated for personal use. She faces multiple charges, including theft and receiving stolen property, and was released on unsecured bail pending a preliminary hearing.

Red Lion, Pennsylvania – Woman Faces 30 Felony Counts for Alleged Theft Exceeding $95,000

In Red Lion, Pennsylvania, Kathryn Mary Khuc, 44, has been formally charged with 30 felony counts, stemming from allegations that she stole more than $95,000 from her former employer, Kinsley Construction. The charges include multiple counts of theft, receiving stolen property, and possessing proceeds from criminal activity. The case highlights a significant financial misconduct involving an employee with nearly a dozen years at the company.

Details of the Allegations and Discovery

Khuc was employed by Kinsley Construction from December 2012 until her termination in December 2024. During her last two years with the firm, she served as the senior controller of financial systems, overseeing the company’s financial transactions and records. The suspected theft was uncovered in April 2025 when the company’s chief financial officer (CFO) noticed irregularities in the financial logs. Specifically, Khuc had not completed a bank transaction log for two years, raising suspicions.

Following her departure, investigators examined bank records and discovered numerous suspicious transactions between April 5, 2024, and December 6, 2024. These transactions did not align with Kinsley Construction’s usual banking practices, which typically involved M&T Bank accounts. Instead, funds were transferred to a Fulton Bank account that was not associated with the construction firm. Further investigation revealed that Khuc had changed the bank account information in the company’s financial systems to facilitate these transactions.

Transaction Irregularities and Key Findings

Bank records obtained through a search warrant indicated multiple deposits exceeding $10,000 from Kinsley Construction into Khuc’s Fulton Bank account. The transactions involved payments to various entities, including Highmark and Express Scripts, which are regular business partners of Kinsley Construction. However, when Highmark was contacted regarding an April 5, 2024, payment, the company confirmed that the associated invoice number was invalid, and they had no record of the payment, suggesting the transaction was potentially fraudulent.

The investigation further revealed that Khuc’s bank account was linked to Sai Gon Cafe, a business located in Lancaster County owned by Khuc and her husband. Records showed that the Cafe’s account, which previously had a negative balance, began receiving payments from Kinsley Construction during the fraud period. These payments appeared to be used for expenses such as rent, payroll, and other operational costs.

Legal Proceedings and Current Status

The Pennsylvania State Police obtained a search warrant for Khuc’s Fulton Bank account, uncovering additional evidence. It was reported that the account received several deposits, some totaling more than $10,000. Authorities also found payments made to credit card companies and the Internal Revenue Service (IRS). Khuc’s lawyer has indicated that Khuc does not intend to participate in a police interview.

Khuc faces 10 counts each of theft, receiving stolen property, and possessing property proceeds of a crime. She was released on $100,000 unsecured bail on August 1, 2025. This type of bail means she was released on her personal recognizance without posting collateral. A preliminary hearing is scheduled for August 15, 2025, to review the case further.

Additional Background Information

Investigators uncovered that the Fulton Bank account linked to Khuc belonged to Sai Gon Cafe, a business owned by her and her husband. The account had a negative balance prior to the influx of payments from Kinsley Construction. The payments made to the cafe were used to cover expenses such as rent and payroll, suggesting the funds were diverted for personal use. Khuc’s employment with Kinsley Construction was officially terminated in December 2024 amid the allegations.

This case underscores the significance of internal financial controls and routine audits to prevent and detect employee misconduct. Authorities continue to investigate the full extent of the financial misappropriation and any additional involvement by other parties.