The two Irishmen jailed for a long-running payroll fraud at Navillus, one of New York city’s biggest construction firms, have been released from prison and are now bidding to have their convictions overturned.
Kerryman and father of six Dónal O’Sullivan (62), former president and CEO of Navillus, and Tipperary man and father of two Pádraig Naughton (52), the company’s financial controller, were each jailed for their role in a payroll fraud that ran for more than 12 years and deprived unions’ benefits funds of monies due on behalf of Navillus workers.
The monies were due under collective bargaining agreements (CBAs).
Mr O’Sullivan’s sister Helen, 63, the company payroll administrator, was also found guilty, but avoided jail. She is serving two years’ probation.
Mr Naughton was originally handed a one-year sentence, but the court reduced it to align it with Mr O’Sullivan’s six-month jail term. Both were due to start their sentence on November 13, but were given leave to spend Thanksgiving with their families.
Motions to remain on bail pending an appeal of their convictions were denied.
Mr O’Sullivan was also ordered to pay $1.276m (€1.28m) in restitution to the unions’ benefits funds, with payments due to begin last January, despite a request for a stay, pending appeal.
Mr O’Sullivan, a native of Ballinskelligs Co Kerry, was released from prison in April and Mr O’Sullivan in recent days.
Both men, along with Ms O’Sullivan, are appealing their conviction in a bid to clear their names. Lawyers for the parties have submitted written briefs to the courts challenging the outcome of their trial. No date has yet been set for an oral argument.
Mr O’Sullivan stepped down as Navillus CEO and president following his 2020 arrest. He had set up the company with his siblings in the 1980s. It became a huge player in New York’s construction industry, working on prestige projects such as the 9/11 Memorial, Grand Central Station, and One Vanderbilt.
Mr O’Sullivan’s brother, Kevin O’Sullivan (60), is the Tower Holdings Group (THG) developer behind plans for the €20m Prism office building in Cork City near the city’s bus terminus.
Work on the Prism in Cork began in November 2021 but halted the following June. Asked by the if it had abandoned its plans, a spokesperson said THG had “temporarily slowed down construction on the Prism, having temporarily reinstated footpaths” “due to the recent dip in the global commercial property market”.
“We are hopeful to increase activity as the commercial property market recovers,” the spokesperson said.
“Tower Holdings Group have invested significantly on site progress to date and look forward to delivering this prestigious project.”
No work has taken place at the site for two years.
Kevin O’Sullivan’s Tower Holdings Group also has planning permission for a skyscraper hotel on the former Port of Cork city site. Nearly four years after permission was granted, the development has not started.
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