(Lincoln, NE) -- Omaha City Councilman Vinny Palermo is ordered to be held in jail until he goes to trial on federal fraud charges.
On Friday, a federal judge in Lincoln ordered that Palermo, along with former Omaha Police Captain Richard Gonzalez and Jack Olson, remain in the Saunders County Jail. The three men, along with former Omaha Police officer Johnny Palermo, were federally indicted last week for misuse of funds from two local non-profits. Earlier this week Johnny Palermo, who is not related to Vinny, was also ordered to be held without bail. All of them have pled not guilty to the charges.
Federal Prosecutors accuse Palermo of accepting luxury gifts and trips, among other things, in exchange for council votes on funding for two police-related non-profits. Gonzalez, Olson and Johnny Palermo are accused of misusing funds from the Omaha chapter of the Latino Police Officers Association and Police Athletics for Community Engagement.
In making her decision, the judge said that Palermo poses a “serious risk of obstruction or attempted obstruction of justice, and of actual or attempted intimidation of witnesses.”
After hearing of the judge's decision Omaha Mayor Jean Stothert released the following statement:
"Following the federal judge’s order that Vinny Palermo remain in jail until trial, I again call on him to resign his seat on the Omaha City Council. The residents of Council District 4 deserve representation on the Council. His resignation will begin the process to replace him and the Council can continue its important work without further interruption.
Without his resignation, the City Charter requires Palermo to forfeit his seat after three consecutive months of unexcused absences or six consecutive months of absence for any reason. If convicted, he would forfeit his seat. The City Law Department is also exploring other options that may be allowed to require forfeiture of his council seat." -Mayor Jean Stothert