Emily Nitcher, Jessica Wade and Christopher Burbach
Omaha World-Herald
Federal agents searched the South Omaha home of Omaha City Councilman Vinny Palermo Tuesday morning, Dec. 20.
Four men, including Omaha City Councilman Vinny Palermo, have been federally indicted in connection with alleged fraudulent activity involving the Latino Peace Officers Association and Police Athletics for Community Engagement, or PACE.
The indictment was filed April 19 and unsealed Friday. The charges are against Vinny Palermo, retired Omaha Police Capt. Rich Gonzalez, retired Omaha Police Officer Johnny Palermo and Jack Olson.
Federal court papers allege that Gonzalez and Johnny Palermo provided personal and financial benefits, "to include airfare, luxury hotel accommodations, travel arrangements, and other items of value" in exchange for official actions taken by Vinny Palermo in his capacity as a city councilman.
The indictment also alleges money was diverted from PACE and the Latino Peace Officers Association to benefit individuals involved with the conspiracy.
The indictment includes information gathered from wiretaps, including text messages sent between the four men and others.
Vinny Palermo’s attorney, W. Randall Paragas, said he will not comment on the case until after the councilman appears in court on Monday afternoon.
Steve Lefler, an attorney for Gonzalez, said, “I have great faith in the Gonzalez family and I have great faith in Rich Gonzalez, and I am positive that once all of the information comes forward this investigation will be shown to be politically motivated effort to embarrass the Gonzalez family.”
He said the arrest appeared to have been designed to maximize the embarrassment to Gonzalez and his family. Lefler said he had been in contact with U.S. Attorney’s Office during the investigation and said Gonzalez would turn himself in, “which is done all the time.”
“To have six police cars show up at the home of a retired police captain, I mean, it’s just nuts,” Lefler said.
Conducting the arrest on a Friday when a federal judge won’t be available until Monday means Gonzalez will have to spend the weekend in jail, Lefler said.
“The Gonzalez family has given their entire lives towards the benefit of the Omaha community, and the way that they are treated is truly a disgrace,” Lefler said.
Vinny Palermo, who serves as vice president of the seven-member council, hasn't publicly addressed the search of his home or the federal investigation.
There are no city laws or ordinances that require City Council representatives to resign should they be charged with a felony or come under federal investigation. The City Charter does state that council members may be removed from office by recall if convicted of a felony or any crime involving a violation of the official oath.
In December, at the crack of dawn, FBI agents and Nebraska State Patrol troopers searched the South Omaha home of Vinny Palermo for three hours.
Authorities also served federal search warrants at the home of Johnny Palermo — who is not related to Vinny Palermo — and the Corrigan Multipurpose Senior Center at 3819 X St. The Corrigan center is owned by PACE.
About a week prior, federal agents also searched the Papillion home of Rich Gonzalez. Gonzalez is the executive director of PACE.
The is a developing story and will be updated.
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Nebraska defensive backs line up for drills during practice on Tuesday, April 11, 2023, at the Hawks Championship Center in Lincoln.
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