Police allege former Kinsley employee stole $100K from the company to fund Lancaster cafe

A former Kinsley Construction employee has been charged with the theft of almost $100,000 from the company, according to state police.

Kathryn Khuc, 44, of Red Lion, is facing 10 felony counts of knowledge that property is proceeds of an illegal act, 10 counts of theft by unlawful taking, and 10 counts of receiving stolen property, according to charges filed by Pennsylvania State Police in Springfield Township on July 31, 2025.

Khuc was arraigned and released on $100,000 unsecured bail on Friday, Aug. 1, 2025, court records show.

According to an affidavit of probable cause filed against Khuc by Pennsylvania State Police in York County, the charges involved the alleged theft of $95,583.51 from Khuc’s employer, Kinsley Enterprise, Inc., a major York County construction company.

Kinsley Enterprises, which is part of the Kinsley family of companies, lists itself as the “management company that oversees the business assets of the Kinsley family,” including Kinsley Construction.

Police were first contacted for a theft report made by executives at Kinsley Construction on April 8, 2025, the documents state.

Investigators learned that Khuc had worked at Kinsley from December 2012 through December 2025, and had most recently held the role of senior controller of financial systems from 2023 to 2025.

As part of that job, Khuc was responsible for preparing a bank transaction log, the company told investigators.

According to company management, Khuc had been terminated, and following her termination, management discovered that Khuc had not completed a financial log for the last two years, the documents state.

The company then discovered 10 transactions in the account that had been allegedly sent to a bank account not associated with Kinsley, the affidavit states.

In the documents, investigators list the 10 suspicious transactions, which come to a total of $95,583.51.

Police allege that the transactions initially appeared as part of routine weekly payments that Kinsley made to Highmark and Express Scripts, but upon further review, were listed with invoice numbers for “money being sent out,” rather than the usual practice of those two businesses taking out the money themselves.

The company contacted the two businesses in relation to these 10 payments, and they allegedly told them the invoice numbers were not valid and that they had no records of the payments.

Police then obtained a search warrant on the bank accounts of Khuc, which revealed the account was allegedly listed as the bank account of the Sai Gon Cafe in Lancaster County.

That cafe, investigators wrote, is allegedly owned by Khuc and her husband.

A Facebook page for the cafe, which shares the same phone number and email address as listed by investigators for the bank account, posted on Aug. 1, 2025, that the business would be closed on Aug. 2 and 3.

The cafe, located on the 1500 block of Manheim Pike in Manheim Township, lists itself as a “family-owned business since 2004.”

Prior to the first alleged payment made to the cafe’s account from the Kinsley accounts, investigators state that the account was found to have a balance in the negatives in April of 2024.

Checks provided by the bank to investigators allegedly showed that Khuc was making payments in the form of checks from the account that were for “items such as rent, business supplies, and for payroll purposes,” police allege in the affidavit.

Police contacted Khuc on July 9, 2025 and were advised by Khuc that she was “not interested in speaking” about the investigation and that she had a lawyer, the charging documents state.

A preliminary hearing for Khuc is scheduled for Aug. 15, 2025, court records show.

Khuc is represented by Steve Rice Law, according to court records.

The York Daily Record has reached out to Khuc through her attorney, as well as to Kinsley Enterprises, but had not yet heard back from either as of Tuesday afternoon.

This article originally appeared on York Daily Record: Red Lion PA woman charged with $100K theft from Kinsley Construction