OMAHA, Neb. (KMTV) — An Omaha city council member, a former Omaha police captain, a former Omaha police detective and a fundraiser have all been arrested on federal charges and are being detained in a Saunders County jail.
It's part of a federal investigation into public corruption.
Two indictments, which total 53 pages, outline multiple charges against the men.
What are the charges against Councilman Vinny Palermo?
Omaha Council member Vinny Palermo is charged with honest services fraud conspiracy, two counts of honest services fraud, bank fraud and five counts of wire fraud.
He is accused of getting improper travel benefits, like trips and other things of value in exchange for official acts relating to the Latino Peace Officers Association (LPOA) and Police Athletics for Community Engagement (PACE).
The indictment also states that Palermo saw thousands in personal financial gain, too. This includes allegations of him steering public money through favorable city contracts to businesses like Omaha Glass Pro that he once owned, ultimately paying off the loan on his new truck.
It also alleges he received personal benefits from money fraudulently obtained by Johnny Palermo and Rich Gonzalez like luxury trips including airfare and accommodations in cities across the country.
Charges against the other suspects:
All four men are accused of defrauding LPOA donors and the board, while Johnny Palermo and Gonzalez are also charged with defrauding PACE.
Johnny Palermo, who is not related to Vinny Palermo, Richard Gonzalez and Jack Olson are facing charges that include wire fraud conspiracy, honest services fraud and more.
One indictment alleges that Rich Gonzalez would misrepresent himself as a board member and conduct financial transactions on behalf of the LPOA and Jack Olson would misrepresent himself as a donor solicitor for the LPOA.
The donations they solicited were used for their personal benefit and were used to pay for everything from drinks and keno at a local bar to commercial sex services from a massage parlor in Omaha.
Sexual assault investigation
Johnny Palermo is also accused of accepting financial benefits from Gonzalez and Olson that influenced him to interfere with a sexual assault investigation while he was with the Omaha Police Department.
Olson was the main suspect in that sexual assault investigation.
3 News Now reached out to Omaha Police and Public Information Officer Neal Bonacci, who says that the case was investigated by the department as thoroughly as possible and then presented for prosecution.
Bonacci says it did not move forward past that point.
All four of the individuals have been booked into the Saunders County Jail.
Reaction from Omaha officials
Omaha Police Chief Todd Schmaderer says he's appalled, but not shocked about the indictments.
Omaha Mayor Jean Stothert called on Vinny Palermo's immediate resignation from the city council and plans to meet with PACE in the coming weeks to "reassess the city's cooperation" with the organization.
City Council President Pete Festersen says they'll review closely, but the city council will continue to conduct business.
What comes next?
Officially, Vinny Palermo still sits on the city council and can only be automatically removed if he is convicted.
The city has put out a statement saying Vinny Palermo can be removed for missing enough meetings without being excused and it is the law department's position that missing meetings due to pre-trial incarceration will not count as an excused absence.
Vinny Palermo, Johnny Palermo, Gonzalez and Olson are all set to make their first court appearances on Monday in Lincoln.
Links to the indictments are below. We did not edit the documents and the language might be offensive to some.
Indictment against Johnny Palermo, Richie Gonzalez, Jack Olson
Indictment against Vinny Palermo, Johnny Palermo and Richie Gonzalez
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