Former school principal in Midlands to be sentenced over six figure theft later this month

A former school principal in the Midlands who admitted stealing €101,101 from St Francis Special School will be sentenced later this month. 

Malachy McNulty, 39, Summerhill, Beladd, Portlaoise appeared before a sitting of Laois Circuit Court in Portlaoise on Thursday.  Judge Keenan Johnson said the case illustrates the “perniciousness” of a gambling addiction. 

The defendant had pleaded guilty to sample charges last February and was arraigned on further sample charges in relation to the thefts on Thursday. In total, the defendant who is well known as a coach and a former senior player,  faces 381 counts of theft and forgery on dates between January 2017 and February 2019. 

The court was told the defendant had forged the signature of school board of management chairman, Fr Paddy Byrne on 63 occasions. The 318 thefts relate to cheques to the value of €42,355.81 and visa transactions totaling €57,643.

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Barrister Will Fennelly told the court that there was a building project taking place at St Francis Special School at the time of thefts. The defendant, as principal,  was in a position to write cheques with a co-signatory,  he explained.

However, on July 1, 2019 Fr Paddy Byrne reported the matter to gardai. “He had discerned that a large volume of cheques were written and made payable to the principal,” he said. Fr Byrne made an official complaint the following day. 

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Mr Fennelly said that “in June 2019 it had been brought to the attention of Fr Byrne that Mr McNulty appeared to be frequently attending the bookies offices during work hours.” 

When confronted by Fr Byrne, the defendant admitted that he had been stealing to fund a gambling addiction, Mr Fennelly explained. 

The incident triggered an audit from the Department of Education’s financial section who discovered the true scale of the thefts. 

Detective Garda Erica Sweetman said the defendant acknowledged the transactions when he was arrested.  “I don’t think there was any planning to it. He took the opportunity and it got out of hand,” she said. Det Sweetman said he was very remorseful. “He was as co-operative as he could be. He made full and frank admissions,” she added. 

Det Sweetman read a victim impact statement from the school’s board of management. It outlined their “deep disappointment” and “the great shock to the board” on discovering the breach of trust. 

They acknowledged a repayment of €23,600.21 had been made but said they need the full sum repaid. The board said the defendant was hired in January 2017 and had exemplary references.  They described the incident as a “tragedy”, particularly in the context of the defendant’s addiction. 

Mr Kelly, a Barrister for the accused, acknowledged the seriousness of the case and the breach of trust, which he said is made worse by the fact that it is a special school. 

When his client was confronted by Fr Byrne, “he effectively began a kind of torrent of admissions,” he said. “He expressed, I think, very profound regret and shame,” Mr Kelly added. 

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“He has never come to the adverse attention of gardai prior to this and never since,” he added. 

The barrister said his client was “in the depths of addiction” and was “a man in personal and psychological turmoil” at the time of the offences.  The court was told the defendant had gone sick and attended psychological services in Portlaoise before moving on to the Rutland Centre in the wake of his arrest. He later resigned as school principal. 

Mr Kelly produced “13 letters either of reference or going to prove the rehabilitation steps that Mr McNulty has engaged in." He noted the defendant was supported in the court by his family. He said the defendant was a married man, although now legally separated. He said his client is manager of the Rhode Senior Team.

The barrister said for a number of years his client gambled increasingly compulsively. He told the court that the defendant’s brother had suffered from gambling addiction and “his brother took his own life in 2010 in that context.” 

Mr Kelly said his client’s “position is that he wants to pay every last penny to St Fintan’s School” and he added that this is, “whether he is imprisoned or whether he is not.” He said his client had gathered a further sum of €26,500, which has all come from his earnings. 

The defendant had been teaching in Carlow earning a net income of €38,000 a year, he explained. He hopes to continue in that employment and his union are representing him on that front, his barrister explained. “In August he will know one way or another,” he remarked. 

In relation to the money owed to St Fintan’s, Mr Kelly said, “it is hoped that one way or the other, the account will be settled within the year.” 

Judge Keenan Johnson said it was “abundantly clear” that the defendant “had an entrenched gambling problem that dominated his life.”

Judge Johnson said the case illustrates the “perniciousness of a gambling addiction and what it can do.” He described it as “quite frightening” to think that someone who is clearly intelligent and capable can find themselves so consumed by addiction.

He noted the serious breach of trust and said “making recompense to the school has to be a priority” in the case. He noted the board of management, who are volunteers, would have suffered “enormous stress” as a result of the defendant’s actions.   

Judge Johnson said he wanted time to consider an appropriate sentence for the accused. He remanded the defendant on bail and put the case back to June 23.