Navillus bosses lose their appeal over New York construction firm payroll fraud

New York construction kingpins Dónal O’Sullivan and Pádraig Naughton sought to have their fraud convictions overturned

Donal O'Sullivan, the founder, owner and president of Navillus. Picture: Yuki Iwamura

A US Court of Appeal has upheld the convictions of a Kerry brother and sister and their Tipperary colleague who were found guilty in 2021 of involvement in a payroll scheme that defrauded labour unions of $1m in benefits’ funds.

Ballinskelligs' natives, siblings Dónal (65) and Helen (64) O'Sullivan and Nenagh man Pádraig Naughton had engaged in the fraud at Navillus Consulting, a major construction company in New York, which Dónal founded back in the 1980s and where he was CEO until he stepped down following indictment in 2020. His sister Helen had run the company's payroll, while Mr Naughton was financial controller. 

Helen O'Sullivan was a payroll administrator for Navillus. Picture: Yuki Iwamura

At the time of their sentencing in June 2023, Mr O'Sullivan told the Irish Examiner that he "couldn't wait for the appeal to start so we can vindicate ourselves in the future". However, the US Court of Appeal issued a summary order last week confirming the trial convictions of the three. 

The Court said it had considered the Appellants’ remaining arguments and found them to be “without merit”.

Padraig Naughton, chief financial officer for Navillus.  Picture: Yuki Iwamura

“For this reason, we affirm the judgment,” the judges said. Both Mr O'Sullivan and Mr Naughton served a number of months in prison, while Ms O'Sullivan was given two years' probation.

The siblings' brother, Kevin O'Sullivan, a director of Tower Development Properties Ltd, has plans to build a 34-storey hotel on the former Port of Cork site at Custom House Quay.

 This week, Cork City Council said "the owner remains focused on developing the site in line with the granted planning permission". Permission expires next March.