(Omaha, NE) -- One of the former Omaha Police officers indicted in a federal fraud investigation is ordered to remain in custody.
On Monday, Johnny Palermo made his initial appearance in federal court to plead not guilty. In addition to being accused of misusing funds from the Latino Peace Officers Association and Police Athletics for Community Engagement (PACE), Johnny Palermo is also accused of interfering in a sexual assault case against Olson. Federal prosecutors also say Johnny Palermo was working with two gangs to traffick drugs. During Monday's appearance, a federal judge ordered that Johnny Palermo be held without bond, saying that he could not be trusted.
Johnny Palermo is one of four men, including retired O-P-D Police Captain Richard Gonzalez, Omaha City Councilman Vinny Palermo and Jack Olson, facing federal prison time for reportedly misusing funds from LPOA and PACE. Johnny Palermo and Councilman Vinny Palermo are not related.