US-based Kerry developer in legal battle over employee benefit funds 

Artist's impression of the proposed Prism Building in Cork, a project planned by Kevin O'Sullivan whose brother, Donal O'Sullivan, is facing charges in the US. 

Lawyers acting on behalf of a US-based Kerry developer — who is charged, inter alia, with embezzlement from employee benefit funds — have filed a pre-trial motion seeking to dismiss some of the charges against him, his sister, and a company employee.

The application for dismissal of four of 11 charges levelled against founder and president of Navillus construction company, Donal O’Sullivan, his sister Helen O’Sullivan, the company’s treasurer, and Patrick Naughton, financial controller, was made this week.

All three were arrested and charged last July with wire fraud, mail fraud, embezzlement from employee benefit funds, submission of false remittance reports to union benefit funds, and conspiracy to commit those crimes. They were released on bond and are due to go on trial next October.

Successful New York construction firm

Navillus, from which Mr O’Sullivan temporarily stepped down as president in August, is one of New York city's largest construction firms, with involvement in projects such as the 9/11 Memorial & Museum.

The firm is a signatory to multiple collective bargaining agreements with unions that required the company to employ union workers on its projects and to make contributions to various union benefits including pension, annuity and welfare funds on their behalf. It is alleged in the indictment that the defendants engaged in a payroll scheme from approximately 2011 to 2017 to avoid making those contributions by using a consulting firm to pay certain Navillus workers for work done on Navillus construction jobs. It is alleged Navillus avoided making over $1m in required contributions to union benefits funds.

Cork Harbour Commissioners investment 

Mr O’Sullivan, who is originally from Ballinskelligs, Co Kerry, is a passive investor with his brother, Kevin O’Sullivan, in the Port of Cork harbour commissioners site in Cork city.

Kevin O’Sullivan, through his firm, Tower Holdings Group, is planning to build Ireland’s tallest building on the site, a 34-storey hotel, which is currently with An Bord Pleanála. The group is also behind plans to build the €20m Prism building on a derelict site close to Parnell Place.

In August, Donal O’Sullivan, who has protested his innocence, temporarily stood down as CEO of Navillus Contracting.

Last Tuesday, his attorney, Alan Vinegrad, filed a motion to dismiss some of the charges. Two of those charges relate to embezzlement. The motion says they must be dismissed because the relevant embezzlement statute “does not reach the conduct alleged in the indictment”. 

The motion also seeks the dismissal of two further charges arguing that they are outside the five-year statute of limitations period.

The motion states the government “cannot prosecute the defendants for alleged acts of embezzlement and filing false reports that occurred prior to the limitations period”.

The trial has been scheduled for October 4 to 25.