Kerry business owner gets six months for payroll fraud at New York construction firm

Donal O'Sullivan's sister given two years' probation for her role

Founder, owner and president of Navillus, Donal O’Sullivan outside Brooklyn Federal Court in New York on June 30. Picture: Yuki Iwamura

THE Kerry owner of a major New York construction company has been given a six-month jail term for his role in a multi-year payroll fraud that deprived union workers of legally required union benefits funds.

Dónal O’Sullivan’s sister, Helen (62), who administered payroll at Navillus (Sullivan spelt backwards) was given two years' probation, with a special condition that she provide 100 hours of community service. She was fined $5,000. 

Dónal (61) was also sentenced to two years supervised release once his sentence is served, and 100 hours of community service to be carried out during that time. Both siblings have leave to appeal. Dónal can remain on bail ahead of a prison term, currently scheduled to begin in November.

In sentencing the two at Brooklyn’s main courthouse, district court judge Pamela Chen said she had taken into account the huge volume of letters of support submitted on behalf of the defendants “perhaps the most letters I have ever received” in relation to any case, outlining “extraordinary acts of kindness and generosity” shown by the two, not just to family and friends, but to strangers. 

Helen O’Sullivan was given two years' probation after the case at Brooklyn Federal Court in New York. Picture: Yuki Iwamura

The letters, from friends at home and abroad, didn’t “completely erase the bad”, but the judge said she agreed with the opinion of a judge in a separate, unrelated case, that “a person’s good deeds should be taken into account”.

Judge Chen said she also intended to revisit a sentence handed down to Pádraig Naughton, Navillus’ former financial controller, earlier this week for his role in the payroll scheme. Mr Naughton was given one year and one day for each of the 11 counts to run concurrently and two years supervised release for each of the counts to run concurrently. 

The judge said she would “re-open the sentence”, to make it more commensurate with the O’Sullivans.

Dónal O'Sullivan's lawyer Ilene Jaroslaw of Elliott Kwok Levine & Jaroslaw said: "We are pleased that Judge Chen imposed lenient sentences on Donal and his sister Helen. 

"The sentences reflect the Court’s understanding of the context of the case given Donal and Helen’s lifelong service to others. 

Both Donal and Helen are fundamentally good people who still have more to contribute to the good of society. 

"We are pleased at today’s outcome and look forward to the appeal process."

Mr Naughton, who along with about 100 other supporters of the siblings was present in court, broke down at the announcement. Mr O’Sullivan was allowed to address the court prior to his sentencing and he apologised to his family, his six children, his elderly mother in Kerry and his elderly aunt, his brother with Down Syndrome John D, and to his sister Helen.

Speaking to the Irish Examiner after the sentencing, both Helen and Dónal were visibly relieved. Dónal said he “can’t wait for the appeal to start”. Helen said: 

It should never have happened. It’s not in our DNA to be crooks. 

Asked what his plans were for the rest of the day, Dónal said: “Going for a few pints”.