MANHEIM TOWNSHIP, PA — The owners of Sai Gon Cafe, a Vietnamese restaurant in Lancaster County, are facing felony charges after allegedly embezzling nearly $100,000 from a York County construction company.
Kathryn Mary Khuc, 44, and her husband, Khanh “Ken” Hoa Khuc, 45, both of Red Lion, are accused of using stolen corporate funds from Kinsley Construction to pay off rent, business expenses, payroll, IRS payments, and credit card bills.
Pennsylvania State Police allege that between April and December 2024, Kathryn Khuc funneled $95,583.01 into an account tied to the Sai Gon Cafe by disguising payments as insurance transactions labeled “Express Scripts” and “Highmark.” Investigators confirmed the payments never reached the listed providers.
At the time of the thefts, Kathryn Khuc was employed as senior controller of financial systems at Kinsley Construction. She worked there from December 2012 until her termination in December 2024, according to the company’s CFO, Tim Appleby.
A police investigation revealed the money was directed into a Fulton Bank account linked to the Sai Gon Cafe, bearing Kathryn’s home address and contact details. At one point in April 2024, the account carried a negative balance of more than $7,000.
Kathryn Khuc has been charged with:
10 counts of theft by unlawful taking
10 counts of receiving stolen property
10 counts of knowingly receiving funds from illegal activity
Khanh Khuc faces one count each of receiving stolen property and criminal conspiracy.
Both were released on $100,000 unsecured bail and are scheduled for preliminary hearings this Friday.
When approached at the still-operating restaurant, Khanh Khuc declined to comment. The couple later posted a statement on Facebook, saying:
“Our team continues to operate with professionalism… You remain our number one focus.”
Kinsley Construction, a York-based firm with over 1,800 employees, confirmed the internal theft and said it is fully cooperating with law enforcement.
Neither Kathryn nor Khanh Khuc, nor their attorneys, would provide further comment regarding the allegations.
