Kerry siblings convicted of fraud to learn fate in New York courts today

Dónal (61) and Helen (62) O’Sullivan, natives of Ballinskelligs, were convicted of 11 felony counts in 2021 by the US government

Founder Dónal O’Sullivan, and his sister Helen O’Sullivan, who worked as Navillus payroll administrator. 

Two Kerry siblings convicted of payroll-related fraud at a major New York building firm will today learn if they are to be jailed.

Dónal, 61, and Helen, 62, O’Sullivan, natives of Ballinskelligs, were convicted of 11 felony counts in 2021, arising from their participation in a payroll scheme, designed to avoid making legally-required contributions owed by construction company Navillus to union benefits funds.

This meant around 100 workers at Navillus, of which Dónal was founder, owner, and president until his indictment in 2020, lost out on benefits such as health insurance and retirement monies.

Dónal and Helen are brother and sister to Kevin O’Sullivan, whose Irish subsidiary, Tower Holdings Group, is behind plans for the Prism in Cork City centre — on which work halted a year ago — and a 34-storey hotel on the former Port of Cork site in Cork City, on which work is yet to begin.

Earlier this week, Pádraig Naughton, former financial controller at Navillus, was sentenced to one year and one day in prison for each of the 11 counts, to run concurrently. He was also sentenced to two years supervision, following release, for each of the 11 counts, also to run concurrently.

Mr Naughton, a US citizen with Tipperary connections who emigrated in 1998, is due to start serving his sentence in November, with leave to appeal.

The US government has indicated it is seeking a custodial sentence for father-of-six, Dónal, who has submitted around 350 letters in his support to the US District Court ahead of sentencing. Among the letter writers are TD Michael Healy-Rae, Kerry football legend Maurice Fitzgerald, and former chair of Independent News & Media, Leslie Buckley. Over 100 letters have been submitted in support of Helen, who was payroll administrator at Navillus.

The case against the O’Sullivans and Mr Naughton followed on from a civil case taken by the unions against Navillus in 2014, arguing they had violated federal pension law and Collective Bargaining Agreements (CBAs) through the use of “front” companies that were non-union, to secure certain contracts.

The unions won and were awarded c$76m, which was reduced to $25m following mediation, with the matter settled in 2018. The government launched a criminal case in 2020, stating that the three defendants had engaged in a fraudulent payroll scheme from 2011-2017.

Navillus, contractors on prestige projects such as the 9/11 Memorial, had been one of the biggest contributors to union benefits’ funds in New York City, contributing a whopping $145m between 2011 and 2017.