Kerry siblings seek acquittal or fresh trial over fraud convictions in US

Navillus president Dónal O'Sullivan is a passive investor with his brother, Kevin O’Sullivan, in the Port of Cork site in Cork city.

Dónal O'Sullivan, president of US construction firm Navillus

THE Kerryman founder of a major New York construction company, convicted of defrauding unions of benefit funds, has filed a motion seeking an acquittal or a fresh trial.

Dónal O’Sullivan, from Ballinskelligs, whose brother Kevin is behind proposals for a €150m development at Custom House Quay in Cork city, was convicted along with his sister, Helen O’Sullivan, who ran the firm's payroll department and Pádraig Naughton, the head accountant. They were found to have deliberately devised a fraudulent scheme to avoid making required contributions to union benefit funds on behalf of workers at Navillus.

All three have filed motions for judgement of acquittal or a new trial. The US Government has filed a counter motion asking that the motions be denied.

In his motion, counsel for Mr O’Sullivan argues that a “fundamental evidentiary gap” persisted throughout last October’s trial - namely an absence of evidence to prove that Mr O’Sullivan, the President of Navillus, either knew about the fraud or had any criminal intent. 

“Mr O’Sullivan’s role in the company is no substitute for actual proof—whether circumstantial or direct—of his criminal knowledge and intent,” the motion says.

As part of its case, the government said Navillus had used a separate payroll system to its own internal payroll system - not disclosed by Mr Naughton to the unions' auditors - to pay certain employees and in doing so, avoided making the required contributions to unions' benefits funds.

Navillus was required to make the contributions in line with various Collective Bargaining Agreements.

The government’s motion also refers to a Navillus worker (Luis Gonzalez) who was with the company for 10 years and was paid for a period through the external payroll scheme under the name John Michael Sugrue, Mr O’Sullivan’s brother-in-law.

Mr O’Sullivan’s motion says he was aware “of an immigration-related payroll irregularity” in relation to Mr Gonzalez, which did not equate to proof that he knew he was being paid in a manner suggestive of union benefits fraud.

Oral argument in relation to the motions took place last week. If the judge denies the defendants' motions, a date for sentencing will be set, with potential jail sentences of up to 20 years.

Mr O’Sullivan is a passive investor with his brother, Kevin O’Sullivan, in the Port of Cork 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. The group is also behind the €20m Prism project, on which work commenced last November.