Three former executives at one of New York City’s largest construction firms have been found guilty of embezzlement, according to the U.S. Attorney’s Office for the Eastern District of New York.
Between 2011 and 2017, Donal O’Sullivan, Navillus Contracting’s founder, owner and former president; Padraig Naughton, former financial controller; and Helen O’Sullivan, former payroll administrator, engaged in a scheme to avoid making required contributions to union benefits funds.
The defendants violated collective bargaining agreements and skirted more than $1 million in contributions to union employees’ health, pension and vacation funds.
The trio executed the scheme by placing Navillus’ employees on the payroll of a separate consulting company. The consulting company then issued weekly paychecks to Navillus employees for work done on Navillus construction jobs. To conceal the scheme from auditors, the construction company issued fraudulent invoices.
On October 22, the defendants were convicted on all 11 counts including wire fraud, mail fraud, embezzlement from employee benefits funds, submission of false remittance reports to union benefits funds and conspiracy to commit those crimes. Each faces up to 20 years in prison.
Navillus employs more than 1,000 workers, according to its website. The company specializes in commercial concrete, masonry, tile, stone, carpentry and general contracting.
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